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MAURITIUSNATIONAL EXPORT STRATEGYAGRO-PROCESSING SECTOR 2017-2021
The International Trade Centre ( ITC )
Street address: ITC 54-56, rue de Montbrillant 1202 Geneva, Switzerland
Postal address: ITC Palais des Nations 1211 Geneva 10, Switzerland
Telephone: +41 - 22 730 0111
Fax: +41 - 22 733 4439
E-mail: itcreg @ intracen.org
Internet: http : / / www.intracen.org
Layout: Jesús Alés – www.sputnix.es
This National Export Strategy ( NES ) is an official document of the Government of Mauritius. The NES was developed on the basis of the process, methodology and technical assistance of the International Trade Centre ( ITC ) within the framework of its Trade Development Strategy programme.
ITC is the joint agency of the World Trade Organization and the United Nations. As part of the ITC mandate of fostering sustainable development through increased trade opportunities, the Export Strategy section offers a suite of trade-related strategy solutions to maximize the development payoffs from trade. ITC-facilitated trade development strategies and road maps are ori-ented to the trade objectives of a country or region and can be tailored to high-level economic goals, specific development targets or particular sec-tors, allowing policymakers to choose their preferred level of engagement.
The views expressed herein do not reflect the official opinion of ITC. Mention of firms, products and product brands does not imply the endorsement of ITC. This document has not been formally edited by ITC.
MAURITIUS NATIONAL EXPORT STRATEGY AGRO-PROCESSING SECTOR
2017-2021
Republic of Mauritius
Photo: Miwok (CC0 1.0)
INTERNATIONAL TRADE CENTRE III
ACKNOWLEDGEMENTS
Technical facilitation, guidance and support for the process were provided by the project team of the International Trade Centre ( ITC ).
Name Function Organization
Ms. Marion Jansen Chief, Office of the Chief Economist and Export Strategy ITC
Mr. Anton Said Chief, Export Strategy ITC
Mr. Darius Kurek Project manager ITC
Mr. Rahul Bhatnagar Project technical adviser ITC
Mr. Victor Deleplacque International consultant ITC
Ms. Marnie McDonald Technical editor ITC
Name Organization
Mr. Ashween Bunwaree Mauritius Sugar Syndicate
Mrs. Nirmala Jeetah Board of Investment
Mrs. Smita Bhirgoo Mauritius Chamber of Commerce and Industry
Mr. Sooraj Bheekary Small Farmers Welfare Fund
Mr. Patrick Guimbeau St Aubin
Mr. Vashisht Aujayeb Team Leader
Mrs. Catherine Gris Association of Mauritian Manufacturers
Mr. Adeep Chooramun Board of Investment
Mr. Dominique Vaudin Bourbon Vanilla
Mr. S. Prabhakar Aujayeb FAREI
Ms. Smita Bhugoo MCCI
Mr. Rajen Bahadoor Ministry of Agro and Food Security
Mr. Ved Prakash Baboolall Ministry of Health & Quality of Life
Mr. R. Bharosay Ministry Of Industry & Commerce
Mr. Sylvan Oxenham Oxenham
Mrs. Axelle Nanette PMO ( Rodrigues Division )
Mr. Jeevesh Kumar Sewdeen Small Farmers Welfare Fund
The National Export Strategy ( NES ) was developed under the aegis of the Government of the Republic of Mauritius, the political leadership of the Ministry of Industry, Commerce and Consumer Protection ( MICCP ) and with the operational support of the Enterprise Mauritius ( EM ). This document benefited particularly from the inputs and guidance provided by the members of the sector team.
INTERNATIONAL TRADE CENTREIV
ACRONYMS
AMB Agricultural Marketing Board
AMM Association of Mauritian Manufacturers
APMIS Agricultural Production and Market Information
System
B2B Business-to-business
BOI Board of Investment
CAGR Compound annual growth rate
COMESA Common Market for Eastern and Southern
Africa
EM Enterprise Mauritius
EU European Union
FAREI Food and Agriculture Research and Extension
Institute
FDI Foreign direct investment
GAP Good Agricultural Practices
GDP Gross domestic product
HACCP Hazard Analysis and Critical Control Points
HRDC Human Resources Development Council
HS Harmonized System
ILAC International Laboratory Accreditation
Cooperation
ITC International Trade Centre
MAIFS Ministry of Agro Industry and Food Security
MAURITAS Mauritius Accreditation Service
MCA Mauritius Chamber of Agriculture
MCCI Mauritius Chamber of Commerce and Industry
MEXA Mauritius Export Association
MICCP Ministry of Industry, Commerce and
Consumer Protection
MoBEC Ministry of Business, Enterprise and
Cooperatives
MoE Ministry of Education and Human Resources,
Tertiary Education and Scientific Research
MoFARIIT Ministry of Foreign Affairs, Regional
Integration and International Trade
MoFED Ministry of Finance and Economic
Development
MRA Mutual Recognition Arrangement
MSB Mauritius Standards Bureau
NES National Export Strategy
PoA Plan of Action
R&D Research and development
ROO Rules of Origin
SADC Southern African Development Community
SEZ Special Economic Zone
SME Small and medium-sized enterprise
SMEDA Small and Medium Enterprises Development
Authority
SPS Sanitary and phytosanitary
TISI Trade and investment support institution
TSN Trade support network
VAT Value added tax
INTERNATIONAL TRADE CENTRE V
ACKNOWLEDGEMENTS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . III
ACRONYMS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . IV
EXECUTIVE SUMMARY 1
GLOBAL CONTEXT 3
VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS 9
HISTORICAL PERSPECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9
CURRENT CONTEXT . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
TRADE ANALYSIS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
VALUE CHAIN MAPPING . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 18
THE INSTITUTIONAL FRAMEWORK AND DEVELOPMENT SUPPORT . . . . . 21
COMPETITIVE CONSTRAINTS AFFECTING THE VALUE CHAIN . . . . . . . . . 23
THE WAY FORWARD 39
VISION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39
STRATEGIC OBJECTIVES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 40
LEVERAGING MARKET OPPORTUNITIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
THE IMPLEMENTATION MANAGEMENT FRAMEWORK 49
PLAN OF ACTION 51
REFERENCES 63
CONTENTS
INTERNATIONAL TRADE CENTREVI
FIGURES
Figure 1 : The strategic scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
Figure 2 : Global exports of ‘vegetable, fruit, nut, etc . food preparations’ ( HS 20 ), 2001–2015 ( US $ billions ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Figure 3 : Imports of HS 20 products by region, 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Figure 4 : Evolution of HS20 product imports by region, 2001–2015 ( US $ millions ) . . 7
Figure 5 : Agriculture, value added ( % of Mauritian GDP ), 1976–2014 . . . . . . . . . . . . . . 9
Figure 6 : Mauritius’ economic trajectory : sectoral transformation and GDP per capita ( in US $ ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10
Figure 7 : Value added of Mauritian agriculture at basic prices by main product group, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Figure 8 : Food crop production, Mauritius, 2005–2014 ( thousands of tons ) . . . . . . . . . 11
Figure 9 : Value added at current basic prices of the Mauritian industrial sector, by industry group, 2014 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Figure 10 : Composition of Mauritius’ agro-processing products exports, 2014 ( Mauritian Rupee millions, free on board ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 14
Figure 11 : Exports by region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
Figure 12 : Mauritian trade balance for HS 20 products, 2006–2015 ( US $ millions ) . . 15
Figure 13 : Mauritius food processing value chain . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20
Figure 14 : The strategic scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42
Figure 15 : Mauritius agro-processing future value chain . . . . . . . . . . . . . . . . . . . . . . . . . . 47
INTERNATIONAL TRADE CENTRE VII
TABLES
Table 1 : Top 10 exporters of HS 20 products ( ‘vegetable, fruit, nut, etc . food preparations’ ) in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
Table 2 : Top imported HS 20 products ( ‘vegetable, fruit, nut, etc . food preparations’ ) in 2015 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6
Table 3 : Top 10 importers of Mauritius agro-processing products, 2014 . . . . . . . . . . . . 14
Table 4 : Value options for the processed food sector . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45
BOXES
Box 1 : Tariff nomenclature used to classify processed food . . . . . . . . . . . . . . . . . . . . . . . 4
Box 2 : Border-in gear issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Box 3 : Border gear issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
Box 4 : Border-out gear issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34
Box 5 : Development gear issues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 36
Photo: Miwok (CC0 1.0)
1EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
The goal of the Mauritius Agro-Processing Strategy is to set the sector on the course of strate-gic development by addressing constraints in a comprehensive manner and defining concrete opportunities that can be realized through the specific steps detailed in its Plan of Action ( PoA ). The Agro-Processing Strategy is an integral part of the NES of Mauritius.
The strategy for the next five years will initially aim to improve the production capacity and the productivity of the non-sugar food crop sector and identify new varieties and characteristics of fruits and vegetables which are suitable for processing while developing the capacity of the sector, especially in the field of quality management at all levels of agricultural practices. The next step will then be to look into specific ways to increase value addition and diversify the of-fering of Mauritian processed products with a view to strengthening the sector’s exports and achieving greater market development.
The PoA responds to this vision by setting three strategic objectives to support its implementation :
1. Improve the production and productivity of raw materials suitable for processing2. Improve the sector’s capacity and provide an enabling regulatory environment3. Foster the sector’s integration and achieve greater market development.
The global trade of the fruit and vegetable process-ing industry’s products has expanded rapidly in recent decades, stimulated by several factors : changes in food consumption patterns brought about by urbanization, in-crease in per capita income levels ( notably in developing countries ) and consumer preferences. Western countries, and Europe in particular, are the largest importers of these products in a market characterized by a low concentration of suppliers. Supported by strong demand for processed food products in developing economies, the global fruit and vegetable processing industry is expected to grow at an accelerated pace over the next five years.
Over the years, with the liberalization of the local econ-omy and the sharp increase in gross domestic product ( GDP ) per capita, Mauritius has become increasingly dependent on food imports for domestic consump-tion. Although close to 100 % self-sufficiency in fresh
vegetables and tropical fruits has been achieved follow-ing an import substitution strategy, the domestic agro-processing industry is not quite meeting national demand in either quantity or quality and is currently relying on im-ports for more than 70 % of its food requirements.
However, the Mauritian fruit and vegetable processing industry has not taken off. While efforts have been made to diversify the agricultural sector, the quantity – and the quality – of fresh food products currently produced have only marginally progressed and are insufficient to support the development of a strong, competitive and sustainable agro-processing industry. The lack of economies of scale and the low productivity observed in food crops have also contributed to the high cost of domestically sourced raw materials. In addition, the industry suffers from a clear lack of structure and organization and has not yet managed to attract the significant investments it needs to develop.
2 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
The agro-processing industry has reported poor trade performances over the years. Export data indi-cate that little progress has been made, with very low levels of exports registered over the past decade and no clear upward trend. The value of Mauritian exports of these products is extremely limited, reaching only about MUR 15 million in 2014 according to national statistics, with exports mainly concentrated in Europe – France in particular – and Indian Ocean countries and territories. Importantly, the industry has adopted an inward-looking approach, focusing on achieving a higher level of self-sufficiently rather than increasing exports.
Against this backdrop, the first step towards a more competitive agro-processing sector in Mauritius is to improve the production capacity and the productivity of the non-sugar food crop sector. The Strategy con-sequently aims, initially, at improving the production of raw materials, i.e. fresh fruits and vegetables, through en-hancing farming techniques, improving farm mechaniza-tion and fostering the adoption of modern technologies. Identifying and developing new varieties and character-istics of fruits and vegetables which are suitable for pro-cessing will also be crucial.
In line with rising customer demands and the increasingly stringent norms regulating food and agricultural trade, the notion of quality at all levels of agricultural practices will also play an essential role in this Strategy. Upgrading the National Quality Infrastructure is a prerequisite for the development of the agro-processing industry and, most
importantly, for the expansion of its export opportunities. Developing the capacity of the sector will also be empha-sized, especially by promoting agricultural value addition and by improving the reach and the effectiveness of re-search activities.
The Strategy also aims to provide the industry with a structured domestic market with improved marketing conditions, as well as achieving a higher level of inte-gration among the various supply chain actors. The sector will also benefit from enhanced inter-institutional collaboration and the elaboration of a common strategy and agenda. Efforts will also be made to achieve greater market penetration, particularly in the fields of export pro-motion and market intelligence.
This Strategy was the result of extensive consulta-tions with public and private sector stakeholders, leading to invaluable cooperation among sector opera-tors. Key private sector stakeholders and leading insti-tutions facilitated an exhaustive analysis of the sector. Market-led strategic orientations, prioritized by stake-holders and embedded into a detailed implementation plan, provide a clear road map that can be leveraged to address constraints to trade and maximize value addition. In addition, the inclusive approach ensured that all stakeholders were committed to the process. The Strategy provides Mauritius with a detailed PoA to achieve growth in the sector within the next five-year pe-riod and is articulated around a unifying vision and three strategic objectives.
Figure 1 : The strategic scope
VisionAn innovative and competitive
industry driven by sustainabilityand inclusiveness
Strategic objective 3:Integration and achieve
Strategic objective 2:Improve the secto’s capacity
and provide an enablingregulatory environment
Strategic objective 1:Improve the productionand productivity of raw
materials suitablefor processing
3GLOBAL CONTEXT
GLOBAL CONTEXT
Definition
According to the Food and Agriculture Organization of the United Nations, food preparation and processing can be defined as ‘any change that is made to a food to alter its eating quality or shelf life’. The Organization further indicates that the term ‘food processing’ is broader than preparing and cooking foods as it involves ‘applying sci-entific and technological principles to preserve foods by slowing down or stopping the natural processes of de-cay’. The present Strategy focuses on fruit and vegetable processing in Mauritius.
Historical perspective
The fruit and vegetable processing industry started de-veloping during the European industrialization of the nine-teenth century as a way to extend the shelf life of fruits and vegetables, enabling them to be transported more easily and consumed year-round. The demand for processed food has grown substantially as the global population has become more urbanized – with less access to fresh fruits and vegetables – and wealthier, therefore demand-ing more food, more diverse types of food and higher-quality food.1
Global production
The global fruit and vegetable processing industry in-cludes all businesses that alter fresh fruit or vegetables to create a higher, valued added food product for human consumption. Operators in this industry process fresh fruit and vegetables into canned, bottled, preserved, frozen, dried or otherwise processed or preserved food products for human consumption. The industry also blends salt, sugar, preservatives and other ingredients with fruits and vegetables to make consumer food products.2
1. IBISWorld ( 2016 ). IBISWorld Industry Report, Global Fruit & Vegetables Processing, p. 9.2. Ibid., p. 2.
The primary products of this industry include :
� Canned dry beans � Canned fruit and vegetables � Canned tomato-based sauces � Dehydrated or evaporated fruit ( except sun-dried ) � Dried soup mix and bouillon � Frozen fruit and vegetables � Fruit and vegetable salads � Fruit pulp, puree, spreads and jams � Pickles, chutneys and relishes � Juices, pre-cut vegetables and ready-made salads
Because the size and level of technological complexity of fruit and vegetable processing establishments varies greatly, it is difficult to capture global production accu-rately. According to a study conducted by IBISWorld, a global business intelligence leader, operators in Europe and Asia are expected to produce over 70 % of global ex-ports of processed fruit and vegetable in 2016.
Demand determinants
Food processing industries have grown rapidly interna-tionally, stimulated by several factors. Chief among which is the growing world population : from an estimated 7 bil-lion today, the United Nations predicts that the world pop-ulation will reach 9 billion by 2050, with food security thus taking on unprecedented importance. Demand for pro-cessed fruit and vegetable products tends to increase in line with growth in the world population as these products are considered staple food products throughout much of the world and are becoming increasing popular with the increase of the global urban population.
Another important factor pushing the international de-mand for processed food is the progressive changes in food consumption patterns, particularly lifestyle chang-es brought about by urbanization. Urban populations, which are located further away from farming communi-ties, consume much higher quantities of processed foods ( including processed fruits and vegetables ) than rural
4 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
populations do. As a result, growth in the global urban population increases demand for industry products.3
Also driving the global demand for processed fruits and vegetables is the global growth in per capita income. As incomes grow, consumers demand larger quantities of more diverse and higher-quality food. This explains the growing demand from emerging and developing markets, as higher income usually translates into an increase in the consumption of processed fruits and vegetable relative to less expensive, locally-sourced food.4
Finally, consumer preferences significantly affect industry demand. The growing health consciousness of consum-ers has driven demand for processed fruits and vegeta-bles from Asia, the European Union ( EU ) and the United States of America.
International trade
Driven by these changes in food consumption patterns and boosted by the demand determinants mentioned above, the global trade of processed food has expanded rapidly in recent decades. Despite a contraction of 7.5 % reported in 2015 compared to 2014, due to large supplies and a strong United States dollar that are keeping interna-tional food prices under downward pressure, according to the International Monetary Fund, exports of processed food classified under the Harmonized System ( HS ) 20 code ( see box 2 ) have generally expanded rapidly over the past decade, growing at a sustainable compound an-nual growth rate ( CAGR ) of 5.3 %. As illustrated in fi gure 2, the exported value almost tripled over the period 2001–2015 to reach US $ 57.5 billion in 2015.
3. Ibid., p 13.4. Ibid.
Although European exporters still largely dominate the global market with a 45 % share of world exports in 2015, their influence is declining due to the emergence of Asian suppliers, notably from China.
In a market characterized by a low concentration of sup-pliers ( the top 10 exporters accounted for 64.5 % of the world’s exports in 2015 ), Chinese exporters dominate in-ternational trade, with a market share of 12.9 % in 2015, or US $ 7.4 billion worth of commodities exported. Other major exporters include the United States ( 9.4 % ) and five EU28 Member States : The Netherlands, Belgium, Italy, Spain and Germany together accounting for almost 31 % of world exports in 2015 ( table 1 ).
Box 1 : Tariff nomenclature used to classify processed food
Because the food processing industry covers many different products classified under dif-ferent HS codes, it is difficult to capture accurately the global trends for all processed prod-ucts, especially when targeting fruit and vegetable processing. After a careful analysis of the commodities currently produced in Mauritius, including those that could potentially be produced, the main tariff nomenclature used for the trade analysis is the following : HS 20 ( ‘vegetable, fruit, nut, etc. food preparations’ ). Other key products classed under head-ing HS 21 ( ‘miscellaneous edible preparations’ ) have also been considered, namely ‘food preparations’, and ‘sauces, mixed condiments and mixed seasonings’.
5GLOBAL CONTEXT
Figure 2 : Global exports of ‘vegetable, fruit, nut, etc. food preparations’ ( HS 20 ), 2001–2015 ( US $ billions )
Source : ITC calculations based on United Nations Comtrade statistics.
Table 1 : Top 10 exporters of HS 20 products ( ‘vegetable, fruit, nut, etc. food preparations’ ) in 2015
Exporters Exported value in 2015 ( US $ millions ) Share ( % ) 5-year CAGR ( % ) 10-year CAGR ( % )
World 57 479 - 0.2 5.3
China 7 390 12.9 1.4 7.7
United States 5 423 9.4 5.3 8.0
Netherlands 4 995 8.7 -0.9 6.0
Belgium 3 506 6.1 -2.6 4.1
Italy 3 485 6.1 -1.7 4.1
Spain 2 992 5.2 0.1 3.9
Germany 2 783 4.8 -0.6 2.2
Thailand 2 192 3.8 1.0 5.8
Turkey 2 188 3.8 7.2 7.7
Brazil 2 150 3.7 -5.2 3.0
Source : ITC calculations based on United Nations Comtrade statistics.
The global market size for ‘vegetable, fruit, nut, etc. food preparations’ ( HS 20 ) stood at US $ 55.3 billion in 2015, reflecting a solid annual growth rate of 4.9 % over the past decade. However, the world import bill reached a five-year low in 2015, as illustrated by the zero CAGR reported be-tween 2011 and 2015.
With imported values of US $ 14.8 billion and US $ 14.3 billion respectively, fruit and vegetable juices and pre-served fruits largely dominated the international trade of processed fruits and vegetables in 2015. Together these commodities attracted more than half of world
HS 20 product imports ( table 2 ). The United States, the Netherlands, Germany, Belgium and France rank among the largest importers of fruit and vegetable juices, while the United States, Germany, Canada and France are the largest importers of preserved fruits.
Solid import growth has also been observed in food preparations and sauce products, classified under HS 21 ( ‘miscellaneous edible preparations’ ), imports being dominated by the United States, the United Kingdom of Great Britain and Northern Ireland, Canada, France and Germany.
6 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Table 2 : Top imported HS 20 products ( ‘vegetable, fruit, nut, etc. food preparations’ ) in 2015
Product label Imported value in 2015 ( US $ millions ) Share ( % ) 5-year
CAGR ( % )10-year
CAGR ( % )
Total 55 351 – 0.0 4.9
Fruit and vegetable juices, unfermented 14 838 26.8 -4.1 3.0
Preserved fruits n.e.s. 14 334 25.9 4.0 6.8
Prepared or preserved vegetables n.e.s. ( excl. frozen ) 9 094 16.4 -0.7 3.7
Prepared or preserved vegetables n.e.s. ( incl. frozen ) 6 952 12.6 1.7 6.6
Tomatoes prepared or preserved 4 336 7.8 1.5 6.8
Jams, fruit jellies & marmalades 2 593 4.7 2.9 7.2
Cucumbers, gherkins and onions preserved by vinegar
1 928 3.5 0.2 4.4
Food preparations, n.e.s. ( classified under HS 21 ) 34 552 – 2.2 6.6
Sauces, mixed condiments & mixed seasonings ( classified under HS 21 )
10 752 – 2.5 7.0
Source : ITC calculations based on United Nations Comtrade statistics.
Although the United States is by far the largest importer of processed food classified under the HS20 tariff nomen-clature with almost US $ 7.7 billion worth of these prod-ucts imported in 2015, the EU28 Member States are the main importing market for these products, capturing more than half of world imports, led by Germany ( accounting for 9.2 % of world imports ), France ( 6.8 % ), the United Kingdom ( 6.2 % ) and the Netherlands 6.1 % ) ( figure 3 ). A similar trend has been observed for imports of sauces, mixed condiments and mixed seasonings ( HS 2103 ).
Although its share in world imports is still minimal, only accounting for a mere 3 % in 2015, the demand for pro-cessed food from African countries is booming, with an annual growth of imports of 11 % over the period 2006–2015, boosted by the rapid urbanization of the continent and the growth of the African population. However, there was a sharp decline of 20 % in value of African demand in 2015 compared with 2014, falling below its 2011 level. There is also a significant rise in demand for processed food in Asia, as imports to the continent grew at a CAGR of 8 % over the past 10 years.
Figure 3 : Imports of HS 20 products by region, 2015
Source : ITC calculations based on United Nations Comtrade statistics.
7GLOBAL CONTEXT
Outlook
Supported by the strong demand for industry products in developing economies such as China and India, the global fruit and vegetable processing industry is expected to grow at an accelerated pace over the next five years. Conversely, demand in developed economies is expected
to decline at a marginal rate as consumers increasingly replace their consumption of processed fruits and veg-etables with fresh produce.5
5. Ibid., p. 7.
Figure 4 : Evolution of HS20 product imports by region, 2001–2015 ( US $ millions )
Source : ITC calculations based on United Nations Comtrade statistics.
Photo: Miwok (CC0 1.0)
Photo: Miwok (CC0 1.0)
9VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
HISTORICAL PERSPECTIVEThe food processing sector has for decades been domi-nated by the production and export of sugar in a country that historically has secured its food supply mostly by in-direct use of its agricultural system : that is, focusing on a monocrop ( sugar cane ) generating enough foreign cur-rency to more than cover the importation of most of the country’s food requirements.6
6. Mauritius, Ministry of Agro Industry and Fisheries ( 2008 ). Blueprint for a ‘Sustainable Diversified Agri Food Strategy for Mauritius 2008–2015’, pp. iii–iv.
In the years following its independence in 1968, Mauritius was a sugar-based monoculture with the agricultural sec-tor playing a pivotal economic role and serving as a driver of the country’s development. During that period, sugar alone accounted for over 90 % of total exports of the coun-try, in an economic landscape characterized by a low level of sectoral diversification.
With the successful diversification of the economy into the manufacturing and services sectors in the early 1980s, the contribution of the agricultural sector to GDP began to decline progressively, dropping from around 30 % at the time of independence to approximately 10 % in the mid-1990s ( figure 5 ).
Figure 5 : Agriculture, value added ( % of Mauritian GDP ), 1976–2014
Sources : World Bank national accounts data, and Organisation for Economic Co-operation and Development National Accounts data files.
10 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Figure 6 : Mauritius’ economic trajectory : sectoral transformation and GDP per capita ( in US $ )
Source : World Bank.
Since the 1990s Mauritius has made considerable ef-forts to diversify its agriculture and produce selected food crops to meet domestic demand and ensure some measure of self-sufficiency by using an import substitu-tion strategy.7 Although close to 100 % self-sufficiency in fresh vegetables and tropical fruits has been achieved, the Mauritian agri-food sector is not meeting domestic demand in either quantity or quality, with an overall self-sufficiency ratio of less than 30 %.8
With the liberalization of the local economy and the sharp increase in GDP per capita, Mauritius has become more and more dependent on food imports for local consump-tion and currently relies on imports for more than 70 % of its food requirements, mostly for direct consumption but also, to some extent, for processing. Another trend of particular importance for the future evolution of the sec-tor is the shift in food habits of Mauritian consumers to-wards processed and convenience foods, with a focus on quality, food safety and brands. In the context of food security, the Government has actively been encouraging agricultural and agro-industrial development to diversify the industry.
7. Mauritius, Ministry of Agro Industry and Fisheries ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p.19.8. Mauritius, Ministry of Agro Industry and Fisheries ( 2008 ). Blueprint for a ‘Sustainable Diversified Agri Food Strategy for Mauritius 2008–2015’, p.3.
CURRENT CONTEXTThe agro-processing sector and its future development being closely related to – and dependent on – the sup-ply of locally produced raw materials, i.e. fresh fruits and vegetables, a careful understanding of the dynamics of the non-sugar food crop sector is needed.
According to Statistics Mauritius, the share of agriculture in GDP in Mauritius only reached 3.0 % in 2014, the sugar industry alone accounting for 1.8 %.9 While progress has been observed in the industrial and services groups in recent years, the value added at current basic prices by the agricultural sector is stagnating, only reaching MUR 10,308 million in 2014, far behind the MUR 267,825 million generated by the services industry. As indicated in fig-ure 7, the share of food crops in agriculture is significant, accounting for 24 % of the value generated by the sector in the economy in 2014, or MUR 2,469.5 million, thus con-firming the efforts made in the past decades to diversify the agricultural sector and ensure some measure of self-sufficiency. Although the value generated by the sector at basic prices increased by more than 7 % over the period 2012–2014, the subsector nevertheless remains relatively small in terms of value.
9. Statistics Mauritius ( 2015 ). Digest of Agricultural Statistics 2014.
11VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Figure 7 : Value added of Mauritian agriculture at basic prices by main product group, 2014
Source : Statistics Mauritius ( 2015 ). Digest of Agricultural Statistics 2014.
Taking a closer look at the production of raw materials for the agro-processing industry, i.e. fresh fruits and veg-etables, a first comment relates to the competition for ar-able land between the sugar and non-sugar sectors. It is estimated that there are around 67,000 hectares of land under cultivation, 58,000 hectares of which are dedicated to sugar cane cultivation and the remainder to food crops, tea and tobacco cultivation ( Board of Investment ( BOI ) ). The non-sugar strategic plan also suggests that 8,000 small growers and 375 hydroponic producers cultivating about 8,200 hectares of land are producing on average some 110,000 tons of food crops annually.10
10. Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p. 7.
The main crops cultivated are potato, tomato, onion, cru-cifers, cucurbits, green vegetables and tropical fruits such as banana, pineapple and the seasonal lychee and man-go. This food crop production only marginally progressed over the past decade, even stagnating since 2009 ( fig-ure 8 ). Although close to 100 % self-sufficiency is achieved for fresh vegetables and tropical fruits with the agricultural output, the quantity – and the quality – currently produced remain insufficient to support the development of a strong, competitive and sustainable agro-processing industry.
Notably, as the development of the area cultivated has followed the same trend as the product, the overall pro-ductivity of the food crop sector is plateauing at approxi-mately 15 tons per hectare.
Figure 8 : Food crop production, Mauritius, 2005–2014 ( thousands of tons )
Source : Mauritius Ministry of Agriculture Extension Division up to1997 ; Agricultural Research and Extension Unit as from 1998 : Food and Agriculture Research and Extension Institute as from 2013.
12 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Although it is safe to state that the share of the agro-pro-cessing industry in the economy of Mauritius is extremely limited, more disaggregated and up-to date data would be needed to measure the production and the contribution of the sector to the economy with accuracy. Navindra Boodia ( 2003, p. 50 ) suggests that the production output of pre-served fruits, preserved or prepared vegetables, and fruit and vegetable juices remained fairly stable from 1991 to 2001, though in very small quantities not exceeding 2,000 tons yearly.11 She further indicates, quoting the Mauritius Chamber of Agriculture ( MCA ), that the fruit and vege-table subsector was processing a mere 5 % of domes-tic horticultural production in 2001. Although there is no data available to check on the precise extent of progress made by the sector in terms of production, export data for similar products indicate that little progress has been made in the sector, with very low levels of exports regis-tered over the past decade and no clear upward trend.
Although they do not allow for a precise analysis because sector-specific information is diluted in the broader ‘food manufacturing sector’, largely driven by the growth of the fish processing sector, national statistics do provide an insight into the performance of this segment of the man-ufacturing sector. The food manufacturing sector gener-ated a value added of MUR 20,938 million in 2014, an increase of 31.5 % compared with its 2010 level. The ‘food manufacturing sector’ contributed to 37 % of the value added generated by the entire manufacturing sector in 2014 ( figure 9 ).
Similarly, the contribution of the agro-processing in-dustry to total employment is unclear. However, we can
11. Boodia, N. ( 2003 ). Prospects, Constraints and Opportunities for Fruit and Vegetable Processing in Mauritius, p. 50. Food and Agricultural Research Council, Mauritius.
note that, in 2014, employment in agricultural activities excluding sugar cane, tea and fishing – therefore cap-turing employment in the production of fresh fruits and vegetables – stood at 25,430 persons, representing 57 % of total employment in the agricultural sector that year. Of those, only 5,480 were employed in large establish-ments, confirming the relatively small size of farm hold-ings in Mauritius. By way of comparison, in the sugar cane subsector, large establishments captured 56 % of em-ployment. While the sector employs mainly men ( 53 % ), female employment predominates in small and medium-sized farm holdings ( 54 % ) while the workforce in ‘large establishments’, that is establishments which engage 10 or more people, remains male-dominated at 79 %.
As indicated earlier, owing to the lack of sufficiently dis-aggregated data, it was not possible to obtain a compre-hensive picture of the agro-processing sector in Mauritius, including processing data on the number of proces-sors. Process volumes were also not available. Navindra Boodia ( 2003, p. 50 ) indicates that a census conducted by Boodia and Nallee ( 2002 ) revealed that approximately 35 enterprises were involved in fruit and vegetable pro-cessing at the time the paper was published. While more recent studies would be needed to obtain a more precise and up-to-date overview of the sector, we can affirm that few changes have occurred in the structure of the sec-tor over the past decade. Statistics Mauritius provides an order of magnitude by indicating that 104 large establish-ments were operating in ‘food products’ manufacturing in 2014, employing 11,474 people,12 again largely driven by the growth of the fish processing sector. The beverages segment employed 2,629 persons in 15 large establish-ments that same year.
12. Statistics Mauritius ( 2015 ). Digest of Industrial Statistics 2014.
Figure 9 : Value added at current basic prices of the Mauritian industrial sector, by industry group, 2014
Food, excl.sugar37%
Other32%
Mining andquarrying
2%
Manufacturing88%
Textiles30%
Sugar milling1%Other
10%
Source : Statistics Mauritius ( 2015 ). Digest of Industrial Statistics 2014.
13VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Domestic production
Mauritius has the unique advantage of blending Indian, Chinese, European and African cuisines, which has given rise to a wide variety of exotic commodities. The Strategic Plan 2016–2020 for the Non-Sugar Sector listed a certain number of agro-processing activities in the crop subsec-tor, including the following:
Pickles, or ‘achards’, ( fruits and vegetables ) and other related products
This category of processed fruits and vegetables comprises products such as pickles ( or achards ), sweet and sour ( locally known as ‘aigre doux’ ), and sauces and chutneys. Pastes, including chilli paste and garlic paste, also fall under this category.
Sugar-based productsSugar-based products present important potential for Mauritian processors. They include products such as crystallized fruits and vegetables ; candied fruits ; jam, jelly and marmalade ; fruit paste ; and juice, cordial and syrup.
CanningKey products under the canning category include fruits and syrup, puree and canned vegetables ( including beans and pulses ).
Deep-fried products Deep-fried products produced in Mauritius include banana, potato and cassava chips.Flour A few processors produce breadfruit, banana and manioc flour, among others.Dehydrated fruits and vegetablesFrozen products This category comprises mainly frozen fruits and vegetables and frozen snacks.
Minimal processingMinimal processing activities in Mauritius include the production of whole, diced and sliced fruits and vegetables using different types of packaging including cling film, punnets and vacuum-packing.
Other categories of processed foods are also produced locally by smallholder farmers but the range is so di-verse that it is practically impossible to list all of them. Nevertheless, most fruit and vegetable processors fall in the product category of jam, jelly, marmalade, canned pulses and vegetables, tomato ketchup and sauce, chilli sauce, chilli paste and a vast range of fruit and vegetable pickles.13 Two major private actors have emerged in the agro-processing sector, namely Conserverie Sarjua, spe-cialized in the production of pickles, jams and spices, and Les Vergers de Labourdonnais, whose products include fruit juices, fruit pastes and jams. Other major players in-clude companies such as Fail and Happy World Group.
TRADE ANALYSISGiven the specificities of the agro-processing sector and the fact that it is composed of a broad range of prod-ucts from various subproducts and subcategories, careful analysis is needed to identify as precisely as possible the main products exported by the sector. These commodi-ties derived from the processing of fruits and vegetables are comprised of products classified under HS20 ( ‘veg-etable, fruit, nut, etc. food preparations’ ) and HS21 ( ‘mis-cellaneous edible preparations’ ).
13. Boodia, N. ( 2003 ). Prospects, Constraints and Opportunities for Fruit and Vegetable Processing in Mauritius, p. 50. Food and Agricultural Research Council, Mauritius.
According to national statistics on domestic exports for the year 2014,14 the value of Mauritian exports of these products is extremely limited, only reaching approximately MUR 15 million in 2014. To put these figures into per-spective, exports from the sector accounted for less than 0.03 % of the country’s total exports in 2014. By way of comparison, MUR 7.8 billion worth of sugar was exported from Mauritius that same year, or approximately 13 % of total exports. For decades, the production and export of sugar has been predominant in the food processing sector, with little development of other processing ac-tivities and few large companies operating in the sector. Importantly, the sector has adopted an inward-looking approach, focusing on achieving a higher level of self-sufficiency rather than increasing exports.
Main products exported to date are sauces, pickles and condiments ; food preparations ; and products requiring minimal processing such as prepared or preserved veg-etables. While some level of export has been reported for juice, exports of sugar-based products have not picked up yet ( figure 10 ).
Exports of Mauritian products derived from the agro-pro-cessing sector are mainly concentrated in two regions, namely Europe ( excluding Réunion ) and Indian Ocean countries and territories, accounting for 42 % and 34 % of the sector’s exports, respectively. France is by far the main trading partner of Mauritius, capturing 32 % of the sector’s total exports, importing MUR 4.7 billion worth of goods
14. Domestic exports Free on board ( in MUR ), excluding re-exports.
14 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
in 2014, notably sauces, mixed condiments and season-ings, preserved vegetables and food preparations. With a similar import basket, the United Kingdom is the sec-ond European importer after France. In the Indian Ocean subregion, the main destination for Mauritian exporters is Réunion, notably for preserved, unshelled beans and the typical Mauritian chilli sauce. Seychelles has emerged as another key partner in the region, notably for sugar-based products such as juices, jams, fruit jellies and marma-lades. Other key partners include South Africa, mostly for export of food preparations, and Australia for sauces and preserved vegetables.
As indicated earlier, with an overall self-sufficiency ratio of less than 30 %,15 Mauritius relies heavily on imports for its domestic food supply, importing a very wide range of processed fruits and vegetables. This dependency has
15. Mauritius, Ministry of Agro Industry and Fisheries ( 2008 ). Blueprint for a ‘Sustainable Diversified Agri Food Strategy for Mauritius 2008-2015’, p. 3.
increased over the years. The recent shift of food habits of Mauritian consumers towards processed and convenience foods, with an emphasis on quality, food safety and brands, has also contributed to the sharp increase in processed food imports, deepening Mauritius’ trade deficit for HS 20 ( ‘vegetable, fruit, nut, etc. food preparations’ ) and HS 21 ( ‘miscellaneous edible preparations’ ) products ( figure 10 ).
Combined, Mauritian imports of these products amount-ed to around US $ 78 million in 2015. Imports are large-ly dominated by food preparations ( accounting for 38 % of the country’s imports for these products ), followed by sauces and seasonings ( 13 % ), fruit juices ( 9 % ), and pre-pared or preserved tomatoes ( 9 % ), vegetables ( 6 % ) and fruits ( 5 % ) ( ITC ). The relatively low sophistication of the products imported, with the exception of food prepara-tions and sauces, suggests significant room for import substitution in Mauritius, notably for commodities such as preserved tomatoes, vegetables and fruits, excluding temperate varieties.
Figure 10 : Composition of Mauritius’ agro-processing products exports, 2014 ( Mauritian Rupee millions, free on board )
Source : ITC calculations based on Statistics Mauritius data ( Domestic Exports – Year 2014 ( Provisional ) ).
Table 3 : Top 10 importers of Mauritius agro-processing products, 2014
Importers Value exported ( MUR ) Share ( % )
World 14 974 557 100
France 4 732 230 32
Réunion 2 930 173 20
South Africa 1 474 293 10
Seychelles 1 394 184 9
Australia 1 101 483 7
United Kingdom 977 467 7
Madagascar 828 397 6
Algeria 727 308 5
Switzerland 256 120 2
Germany 202 210 1
15VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Figure 11 : Exports by region
Source : ITC calculation based on Statistics Mauritius data ( Domestic Exports – Year 2014 ( Provisional ) ).
Figure 12 : Mauritian trade balance for HS 20 products, 2006–2015 ( US $ millions )
Source : ITC calculations based on United Nations Comtrade statistics.
16 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Product and market cross section
The following analysis highlights some key features for each of the main export markets of Mauritian fruit and vegetable processing industry products.
European Union ( France, excluding Réunion, and the United Kingdom mainly )
Main products exported
Use and application of products
Main type of buyers in target markets
Top critical success factors
Comparison with competitors
1. Sauces, preparation of sauces, mixed condiments / seasonings ( 44 % of EU imports from Mauritius )Key markets : France ( 89 % of EU imports ), United Kingdom
• Retail, food service, and wholesale
• Distributors• Wholesalers• Fine food
shops
• Sanitary safety and quality standards
• Traceability ( incl. Rules of Origin ( ROO ) )
• Quality ( superior )• Supply consistency• Delivery reliability• Packaging• Niche product
Main competitor : IndiaCritical factors :• Superior quality• Traceability• Certification• Trade agreements• Niche product
2. Vegetables, prepared or preserved ( 26 % )Key markets : France ( 61 % ), United Kingdom ( 29 % )
• Retail, food service, further processing and wholesale
• Distributors• Wholesalers
• Sanitary safety and quality standards
• Traceability• Nutritive quality• Price• Volumes• Delivery reliability
Main competitors : China, MoroccoCritical factors :• Price• Traceability• Certification
3. Food preparations ( 7 % )Key markets : France ( 95 % )
• Retail, food service
• Distributors• Wholesalers• Fine food
shops
• Sanitary safety and quality standards
• Traceability ( incl. ROO )• Quality• Supply consistency• Delivery reliability• Packaging• Niche product
Main competitor : IndiaCritical factors :• Niche products
4. Fruits, nuts, etc., prepared or preserved ( 5 % )Key markets : France ( 55 % ), United Kingdom ( 45 % )
• Retail, food service, further processing and wholesale
• Distributors• Wholesalers
• Sanitary safety and quality standards
• Traceability• Nutritive quality• Price• Volumes• Delivery reliability
Main competitor : IndiaCritical factors :• Price• Traceability• Certification
17VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Indian Ocean Commission members ( Comoros, Madagascar, Réunion and Seychelles )
Main products exported
Use and application of products
Main type of buyers in target markets
Top critical success factors
Comparison with competitors
1. Beans unshelled, preserved ( 36 % of Indian Ocean Commission imports from Mauritius )Key markets : Réunion ( 100 % of Indian Ocean Commission imports )
• Retail, food service and wholesale
• Distributors• Wholesalers
• Sanitary safety and quality standards
• Traceability ( incl. ROO )• Quality• Volumes
Main competitor : RéunionCritical factors :• Price• Volume• Quality
2. Fruit juice ( 20 % )Key markets : Seychelles ( 78 % ), Madagascar, Réunion
• Retail, food service
• Distributors• Wholesalers• Hotels and
restaurants
• Price• Quality• Supply consistency• Packaging
Main competitors : Other regional and African suppliers ( South Africa, Kenya )Critical factors :• Superior quality• Higher-end product• Certification
3. Chilli sauce ( 15 % )Key markets : Réunion ( 95 % )
• Retail, food service
• Distributors• Wholesalers• Hotels,
restaurants and cafés
• Sanitary safety and quality standards
• Quality ( general and Intrinsic )
• Price
Main competitor : IndiaCritical factors :• Uniqueness of the
product ( quality )• Supply consistency
4. Potatoes, preserved ( 14 % )Key markets : Madagascar ( 100 % )
• Wholesale • Distributors• Wholesalers
• Price• Supply consistency• Delivery reliability
Main competitors : Other regional and African suppliersCritical factors :• Price• Delivery reliability
Australia
Main products exported
Use and application of products
Main type of buyers in target markets
Top critical success factors
Comparison with competitors
1. Vegetables, prepared or preserved( 66 % of Australia’s imports of agro-processing products )
• Retail, food service and wholesale
• Retailers • Sanitary safety• Specific quality
standards in Australia• Traceability• Price• Delivery reliability
Main competitors : India, Indonesia, MalaysiaCritical factors :• Delivery reliability• Price• Superior quality• Certification
2. Sauces, preparation of sauces, mixed condiments / seasonings( 11 % )
• Retail, food service and wholesale
• Retailers• Fine food
shops
• Sanitary safety• Specific quality
standards in Australia• Traceability• Niche product• Quality ( superior )• Supply consistency• Delivery reliability• Packaging
Main competitor : IndiaCritical factors :• Niche product• Superior quality• Certification
18 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
South Africa
Main products exported
Use and application of products
Main type of buyers in target markets
Top critical success factors
Comparison with competitors
1. Food preparations ( 100 % of South Africa’s imports of agro-processing products )
• Retail, food service
• Retailers• Fine food
shops
• Sanitary safety and quality standards ( Southern African Development Community ( SADC ) )
• Quality• Supply consistency• Delivery reliability• Packaging• Niche product
Main competitor : IndiaCritical factors :• Niche product• SADC Free Trade
Agreement
VALUE CHAIN MAPPING
Production of raw materials
The first step in the value chain is the production of inputs for the fruit and vegetable processing industry. At this stage, land is prepared and fruits and vegetables planted. Once they have reached the appropriate level of matu-rity they will be harvested by the planters. As consum-ers are sensitive to the quality and taste of the industry products they purchase, this step, i.e. the production of quality agricultural inputs, is crucial to ensure maximized end product quality.
The main production inputs include seeds, fertilizers, agrochemicals, planting materials and land. Input sup-ply is often of low quality and expensive as there is a heavy reliance on imports for most inputs. The key actors at this stage are smallholder planters and farmers, as they handle the bulk of the production of fresh fruits and veg-etables in Mauritius. As indicated earlier, it is estimated that approximately 8,000 small growers are producing on average some 110,000 tons of food crops annually,16 consisting mainly of potato, tomato, onion, crucifers, cu-curbits, green vegetables, and tropical fruits such as ba-nana, pineapple and the seasonal lychee and mango. Not all these varieties are suitable for processing though, and it is estimated that only a mere 5 % of this production is used in the domestic fruit and vegetable processing industry, the bulk of it being consumed as fresh produce.
Raw materials intended for processing are sold either di-rectly to processors or through the auction markets of Port Louis, Vacoas and Flacq that currently regulate the wholesale marketing of fruits and vegetables in Mauritius. It is also estimated that a share of small agro-processors
16. Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p. 7.
operating locally are directly producing the fresh fruits and vegetables used for processing. Finally, although the majority of fresh fruits and vegetables is sourced lo-cally, a small share is also imported by the industry from mainland Africa.
Fruit and vegetable processing
Because the size and level of technological complexity of fruit and vegetable processing establishments varies greatly, it is difficult to establish an exhaustive list of the different processing techniques and operations used in the industry. Nevertheless, despite its variability in scale, fruit and vegetable processing generally involves : the acquisition of industrial and semi-industrial processing equipment ; the sourcing of other raw materials including sugar, preservatives, colourants, antioxidants, etc. ; the acquisition of food packaging ; the use of food packaging equipment ; and, importantly, the use of skilled workers.
The sector being at an infant stage of development, the production of processed food is mainly performed by in-dividual smallholder farmers who most of the time are transforming their own production of fresh produce with limited capacities. As indicated earlier, very few large es-tablishments are currently operating in the fruit and veg-etable industry, with the exceptions of Conserverie Sarjua and Les Vergers de Labourdonnais. There is not really enough information available to identify the capacities of individual processing factories.
As indicated earlier, most products from the domestic fruit and vegetable processing industry include jam, jelly, mar-malade, canned pulses and vegetables, tomato ketchup and sauce, chilli sauce, chilli paste and a vast range of fruit and vegetable pickles.17
17. Boodia, N. ( 2003 ). Prospects, Constraints and Opportunities for Fruit and Vegetable Processing in Mauritius, p. 50. Food and Agricultural Research Council, Mauritius.
19VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Distribution
Once processed, the final products are stored and later distributed to either the local retail market or export mar-kets through various channels.
International markets
As noted in the trade analysis section, the value of Mauritian exports of fruit and vegetable processed prod-ucts is extremely limited, only reaching approximately MUR 15 million in 2014, and concentrated in a limited number of export destinations in Europe and in the Indian Ocean region, with France, Réunion, South Africa and Seychelles capturing more than 70 % of Mauritian exports. Products are sold to these markets through exporters and wholesalers and are then sold to distributors in the des-tination markets for retail trade in supermarkets or fine food shops.
Domestic market
Most local food processing enterprises supply the local market. Navindra Boodia ( 2003, p. 54 ) estimates that less than 20 % of local enterprises operating in the sector ex-port their processed commodities ). In Mauritius, given the relatively small volumes produced by local agro-pro-cessors, most of the production is sold directly to down-stream supermarkets and convenience stores. A share of industry products is also delivered to downstream retail-ers through sales to grocery wholesalers.
Food services – including hotels, restaurants and cafés – are also an important channel of distribution in Mauritius given the highly developed tourism sector and the related infrastructures. Finally, other industries, including food manufacturers, also buy processed vegetable and fruit products from industry operators for use as inputs in their manufacturing processes.
Photo: Miwok (CC0 1.0)
20 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Figure 13 : Mauritius food processing value chain
21VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
THE INSTITUTIONAL FRAMEWORK AND DEVELOPMENT SUPPORTInstitutional framework
Rising concerns about food security and food safety in Mauritius led the Government of Mauritius to develop specific strategies and development plans to support the growth of the non-sugar sector. Efforts are under way to provide the legal framework as well as leadership, policies and supporting interventions with the view to improving the action of the actors in the field. In that context, and as highlighted in the Strategic Plan 2016–2020 for the Non-Sugar Sector, several institutions will require a review of their roles and a reorientation of their actions to better respond to the new challenges faced by this subsector.
The main public institutions involved with the non-sugar sector include :
� The Ministry of Agro Industry and Food Security ( MAIFS ), entrusted with responsibility for all matters pertaining to agriculture : decides on overall policies and agricultural development generally.
� Agricultural Services, the technical arm of MAIFS for its regulatory and policy functions.
� The Small Farmers Welfare Fund, created to promote the economic and social welfare of small farmers and their families. It registers farmers and can set up schemes and projects or create special funds in line with its policy.
� The Irrigation Authority, in charge of the preparation of schemes for irrigation of specific areas.
� The Agricultural Marketing Board ( AMB ), established as a measure to promote diversification of agriculture.
� The Food and Agriculture Research and Extension Institute ( FAREI ), taking over the functions of the Food and Agricultural Research Council and the Agricultural Research and Extension Unit as part of reforms to en-sure cost-effective and quality services, and optimize human resources. FAREI is responsible for conducting research in non-sugar crops, livestock and agrofor-estry, and providing an extension service to farmers.
Other important public institutions and parastatal organi-zations which may not be directly involved in the agro-pro-cessing sector also play an important role in supporting its activities. They include :
� The Commerce Division of the Ministry of Industry, Commerce and Consumer Protection ( MICCP ) ;
� The Mauritius Standards Bureau ( MSB ), under the aegis of MICCP ;
� The International Trade Division of the Ministry of Foreign Affairs, Regional Integration and International Trade ( MoFARIIT ) ;
� The Employment Division of the Ministry of Labour, Industrial Relations, Employment and Training ;
� The Government Analyst Division of the Ministry of Health and Quality of Life ;
� Enterprise Mauritius ( EM ) ; � BOI ; � The Small and Medium Enterprises Development
Authority ( SMEDA ) ; � The Human Resources Development Council ( HRDC ) ; � The University of Mauritius ; � The University of Technology Mauritius ; � The Mauritius Revenue Authority.
Other private organizations including the Mauritius Chamber of Commerce and Industry ( MCCI ) and MCA also play a vital role by providing direct support to their members.
Recent developments
In its efforts to support the development of the non-sugar crop sector the Government of Mauritius, through different public institutions and parastatal organizations, has es-tablished a number of support schemes and mechanisms for the agro-processing industry. An important scheme for the purchase of agricultural and processing equipment has been implemented to encourage planters to acquire farm machinery and equipment to mechanize their pro-duction systems and to venture into food processing or other activities for value addition.18
Other key schemes to improve the supply of raw mate-rials for the agro-processing industry include the Fruit Protection Scheme to prevent fruit damage by bats and birds ; the Crop Nursery ( Curing Scheme ) to assist veg-etable growers to improve their capacity for production of planting materials and to enhance the quality of har-vested produce ; and the Compost Subsidy Scheme to assist farmers in reducing production costs and the use of chemical fertilizers. Assistance will also be provided to planters who are adopting self-assessment guides to upgrade their production system for certification in Good Agricultural Practices ( GAP ) through GLOBALG.A.P. Finally, the Freight Rebate Scheme for the promotion of export of various products, including agricultural prod-ucts, is meant to boost exports from the sector.
In line with the growing interest in agro-industry devel-opment in Mauritius, FAREI has set up a fully equipped Agro-Processing Resource Centre, a research and devel-opment ( R&D ) programme dedicated to agro-processing to service the needs of entrepreneurs interested in the agro-processing and value addition sector. The Centre serves as a model agro-processing unit acquainting
18. Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p. 12.
22 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
prospective agro-processors with semi-industrial pro-cessing equipment and processing norms. It is also used for training and development purposes.
Development policies
The Government of Mauritius has provided strong policy-level support to the sector over the years through initia-tives such as the Blueprint for a ‘Sustainable Diversified Agri Food Strategy for Mauritius 2008–2015’, including its preparatory Strategic Options in Crop Diversification and Livestock Sector ( 2007–2015 ) and, more recently, the Strategic Plan ( 2016–2020 ) For The Food Crop, Livestock and Forestry Sectors, also referred to as the Strategic Plan 2016–2020 for the Non-Sugar Sector.
� The Strategic Plan 2016–2020 for the Non-Sugar Sector, launched in January 2016, sets out the goals and objectives to be attained by Mauritius over the next five years to improve the level of food security and food safety and promote more sustainable agricul-ture. This document is of utmost importance because it ‘promotes the development of the agribusiness sec-tor, to enhance import substitution in order to reduce dependency on imports’. Specific measures have been proposed in the Plan to support agro-processing and value addition in Mauritius, including provisions for the setting up of an agro-processing park, encouraging grouping of operators into clusters, providing incen-tive schemes to upgrade agro-processing operations and providing a capacity-building and incubation facil-ity, among other things. The Plan also insists on the importance of promoting biofarming to ‘ensure the production of safe and quality food, with standards and norms defined’.
� Another important initiative was the preparation, in 2008, of the Blueprint for a ‘Sustainable Diversified Agri Food Strategy for Mauritius 2008–2015’ pre-pared by the Ministry of Agro Industry and Fisheries. This document included a commodity development programme comprising six subprogrammes, includ-ing one dedicated to agro-processing. Actionable strategies were designed for the agro-processing sector, notably to encourage production of vegeta-bles and fruits with suitable processing qualities ; de-velop protocols, norms and standards for minimally processed and preserved products and fruit juices ; initiate the setting up of an incubator ; and offer finan-cial support to the sector. While no evaluation report indicating whether the expected results have been achieved has been published, it is safe to state that the strategy yielded mixed results and that the targets were not fully achieved. Additional efforts are therefore needed to effectively support agro-processing and value addition.
� In its objective to ‘improve the level of self-sufficiency in various commodities, promote export and create new opportunities for farmers, entrepreneurs and ru-ral families to increase farm income and productivity while conserving the natural biodiversity and providing safe, sufficient and nutritious food supply’, the Food Security Strategic Plan 2013–2015 also developed proposals and proposed actions for agro-processing, notably on a food crop basis.
� Reference to the agro-industry is also made in the Government Programme 2015–2019, in particular encouraging its development through regional cross-border initiatives and by accompanying small planters and agro-entrepreneurs to ‘modernize their produc-tion methods, upgrade their skills and professionalize their activities’. Efforts will also be made to encourage young entrepreneurs to engage in agricultural activi-ties. Finally, natural farming and organic production will be promoted.
Selected initiatives currently active in the sector
� The Country Programming Framework 2014–2019 establishes the support of the Food and Agriculture Organization of the United Nations to Mauritius in agribusiness development and the agro value chain. The Framework sets out priorities for collaboration in the field of sustainable agriculture for food security, among others. Agribusiness is one of the priorities of the Framework, with a focus on the strengthening of the enabling environment as well as strategies, legal and management frameworks, and institutional capaci-ties for selected strategic value chains.
� Food processing, including the fish and fish prepara-tion sector, has also been identified as one of the four priority sectors for the implementation of the United Nations Industrial Development Organization Resource Efficient and Cleaner Production Programme in Mauritius. The objective of this ongo-ing project is to improve resource productivity and reduce the pollution intensity of industry and thereby contribute to sustainable industrial development and sustainable consumption and production in Mauritius. Although little information on this project is available, the level of trade focus will undoubtedly be relatively low.
23VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
COMPETITIVE CONSTRAINTS AFFECTING THE VALUE CHAINTraditionally, the scope of trade strategies has been de-fined in terms of market entry, such as market access, trade promotion and export development. This ignores several important factors in a country’s competitiveness. For an export strategy to be effective it must address a wider set of constraints, including any factor that limits the ability of firms to supply export goods and services, the quality of the business environment, and the develop-ment impact of the country’s trade, which is important to its sustainability. This integrated approach is illustrated by the four gears framework schematic on the right.
Border IssuesBorder-In Issues
Border-Out IssuesDevelopment Issues
CapacityDevelopment
Cost ofDoing Business
Developinig skills
and Entrepreneurship
Capac
ity
Diversi
ficati
on
Infrastructure and
Regulatory Reform
Trad
eFa
cilita
tion
Market Accessand Policy Reform
National Promotion
and Branding Trad
e Su
ppor
t
Serv
ices
Poverty Alleviationand Gender Issues
Regional Development
and Integration
Envir
onm
enta
l
Sust
aina
bilit
y and
Clim
ate
Chan
ge
Supply-side constraints
Supply-side issues impact production capacity and include challenges in areas such as availability of ap-propriate skills and competencies, diversification ca-pacity, technology and low value addition in the sector’s products.
Business environment constraints
Business environment constraints are those that influence transaction costs, such as regulatory environment, admin-istrative procedures and documentation, infrastructure bottlenecks, certification costs, Internet access and cost of support services.
Market access constraints
Market entry constraints include issues such as market access, market development, market diversification and export promotion.
Social and environmental constraints
Social constraints include issues related to poverty reduc-tion, gender equity, youth development, environmental sustainability and regional integration.
24 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
SUPPLY-SIDE CONSTRAINTS
Box 2 : Border-in gear issues
� Inadequate use of chemicals and low level of pest and disease control in the production of fruits and vegetables
� Limited availability of raw material for processing exportable goods � Limited uptake of modern management techniques and low level of mechanization � Inadequate storage capacities for fruits and vegetables � Proliferation of fruit bats � High costs of raw materials � Lack of coordination among the different value chain actors � The farming community is ageing and the new generation is unwilling to embark on
agriculture as a profession � The manufacture of processed products with high added value is extremely limited � Low levels of R&D in the agro-processing sector � Low level of domestic and foreign investment in the agro-processing sector � Limited access to finance � Lack of technical expertise in the field of fruit and vegetable processing
CAPACITY DEVELOPMENT
The inadequate use of chemicals raises the issue of the safety of products and could hinder the export potential of the sector
There is limited knowledge among farmers about the use of agrochemicals, and chemical pesticides and fertiliz-ers in particular, and the right treatments to be used for pest and disease problems in field crops. The misuse and abuse of chemical products can lead to the production of fruits and vegetables which are unfit and potentially dangerous for human consumption as they are likely to contain high agrochemical residues. The low level of pest and disease control in the production of fruits and veg-etables further complicates the matter.
There is an urgent need to work with support institutions towards better regulation and control of agrochemical use in the agricultural sector. A crucial need for sensitization of farmers on the safe use of fertilizers and pesticides, and on the concept of sustainable agriculture more general-ly, has also been identified. This concept of ‘sustainable agriculture’ is described in the Strategic Plan 2016–2020 for the Non-Sugar Sector as ‘an alternative approach that maximizes the reliance on natural, renewable on-farm inputs while ensuring long-term environment protection, health benefits and economic viability’.
� Severity : ● ● ● ● ● � Value chain segment : Raw material production � PoA reference : Activities 1.4.1. to 1.4.4.
The limited availability of raw material for processing exportable goods is a major drawback to the development of a viable industry
There is a mismatch between varieties planted and the varieties that can be processed in the country, especially for canning, as most fruits and vegetables are cultivated to be sold as fresh produce, with exclusive reliance on locally available varieties. Unfavourable agronomic and climatic conditions coupled with the degradation of the soil also contribute to the limited availability of raw materi-als in Mauritius, as well as negatively affecting crop yields.
This situation highlights the need for market and feasibil-ity studies to identify the varieties of fruits and vegetables that can be processed and which have export potential. Trials on new varieties of crops should be conducted in order to identify fruits and vegetables that are suitable for the processed food industry. The information collected on potential products should then be disseminated to relevant stakeholders across the value chain.
25VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Note : While it is essential to ensure that the country can produce raw materials in sufficient quantity for pro-cessing, it is equally important to be cautious not to re-direct products meant to be exported as fresh produce towards processing.
� Severity : ● ● ● ● ○ � Value chain segment : Raw material production � PoA reference : Activities 1.1.1. and 1.1.2.
The limited uptake of modern management techniques and the low level of mechanization are limiting agricultural production potential
The productivity of the agricultural sector in Mauritius is negatively affected by overreliance on manual methods and agrochemicals associated with low adoption of good practices and modern agricultural systems. The majority of horticultural holdings still rely on traditional practices at both production and post-production levels, with relatively low use of agricultural machinery to mechanize the work of agriculture. Most operations, from planting to sorting and grading, are still carried out by hand with limited to no technical assistance. The irrigation network also ap-pears to be limited as a result of the high initial invest-ment costs for micro irrigation technologies. In addition, the limited reach of cooperatives and farm organizations contributes to the limited dissemination of improved ag-ricultural techniques.
The Strategy will address these challenges by fostering the adoption of GAP, including harvesting and posthar-vest techniques, plant layout and production systems, through the elaboration of training programmes to farm-ers and extension workers, also building on the current MAURIG.A.P. initiative being developed jointly by MSB and FAREI. Pilot farm initiatives – to be used as demon-strators for the production of specific fruits and vegetables with suitable processing qualities – will also be developed with a view to sharing best agricultural practices.
In order to boost the use of agricultural machinery, schemes and support programmes could be put in place with simplified procedures and eligibility criteria. Efforts could also be made to bring the Leasing for Equipment Modernization Scheme, closed in 2015, back onto the agenda.19 The value added tax ( VAT ) Refund Scheme for agro-industrial and fisheries sector – wherein VAT paid on equipment is refunded to registered producers and which became operational in 2012 – has been made permanent.20
19. Under the Leasing for Equipment Modernization Scheme, the Government provided a line of credit to leasing companies so as to provide affordable financing to SMEs for purchasing of equipment.20. The Scheme provides for the refund by the Mauritius Revenue Authority of VAT paid on a scheduled list of equipment and tools purchased by planters, horticulturists, breeders, apiculturists and fishermen, also including cooperative societies.
� Severity : ● ● ● ● ● � Value chain segment : Raw material production � PoA reference : Activities 1.2.1., 1.2.3, 1.3.1., 1.3.2. and
2.1.3.
The sector suffers from inadequate storage capacities for fresh fruits and vegetables, significantly affecting the quality of the raw materials available for the agro-processing industry
Postharvest losses largely stem from the limited use of ex-isting warehouses and certified storage facilities, or lack of them. Storage capacities such as cold rooms and refriger-ated trucks, essential to maintain the quality of harvested crops, appear to be lacking in most small horticultural holdings, generating significant postharvest losses and affecting the quality of the products.
To address postharvest loss and improve the quality of the raw materials sourced locally, a first step will be to as-sess the availability and use of existing storage infrastruc-ture in the different regions to obtain a clear picture of the current situation and identify needs. Collection points and certified storage centres with the required facilities, such as grading, packaging, etc. should then be established where needed.
� Severity : ● ● ● ● ○ � Value chain segment : Raw material production � PoA reference : Activity 1.2.2.
The proliferation of fruit bats in Mauritius is severely affecting food crops
Due to the lack of major cyclones for over a decade, the population of fruit bats has dramatically increased, shift-ing its International Union for Conservation of Nature sta-tus from ‘endangered’ to ‘vulnerable’ in 2014.21 According to the Mauritian Wildlife Foundation, the most recent bat survey done by the National Parks and Conservation Service found that the population of the Mauritius fruit bat is around 90,000. This proliferation is reported to have a significant impact on food crops.
To tackle the problem of increasing losses incurred by fruit growers, MUR 4 million was provided by the Ministry of Finance and Economic Development ( MoFED ) in 2015 to cover 75 % of the purchase price of bat nets, an initiative that has proven successful even if its scope could be ex-panded. As envisaged in the Strategic Plan ( 2016–2020 ), this anti-bird net scheme to prevent fruit damage by bats and birds for the food crop should be maintained.
21. Mauritian Wildlife Foundation ( 2016 ). Mauritius fruit bat. Available from http : / / www.mauritian-wildlife.org / application / index.php?tpid=30&tcid=81.
26 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
� Severity : ● ● ● ○ ○ � Value chain segment : Raw materials production � PoA reference : Activity 1.2.4.
The high cost of raw materials in Mauritius significantly erodes the competitiveness of the agro-processing sector
Several factors can explain the high price of fruits and vegetables in the country : chief among them is the small size of domestic land holdings,22 preventing the sector from achieving economies of scale. Companies that pro-duce a high volume of output benefit from lower operating costs due to economies of scale, therefore granting these companies a competitive advantage by allowing them to sell their products at lower prices.
Another key factor responsible for the high production costs in Mauritius is the increasing labour compensation, and most importantly the unit labour costs, faced by op-erators. This increase is all the more important because, at the same time, agricultural productivity has not signifi-cantly improved. High costs related to product certifica-tion ( treated separately ), costs related to the import of inputs such as fertilizers and pesticides and the acquisi-tion of farm equipment also contribute to the high cost of Mauritian fruits and vegetables. Although the situation has compelled several agro-processors to source fruits and vegetables abroad, it is important to note that most small and medium-sized enterprises ( SMEs ) acquire their raw materials locally.23
In addition to the different actions envisaged under this Strategy to tackle some of the issues listed above, the fea-sibility of establishing strategic clusters targeting specific fruit and vegetable crops for export will be assessed, with a view to reducing the costs of inputs.
� Severity : ● ● ● ○ ○ � Value chain segment : Raw materials production � PoA reference : Activities 1.1.3., 1.2.3. and 3.1.1.
The lack of coordination among the different value chain actors leads to inefficient sector development
This situation results from low levels of cooperation among the different farmers, poor horizontal and verti-cal linkages and, most importantly, a lack of trust among the different producers operating in the sector. Mistrust among farmers is one of the reasons why there has been, despite repeated Government efforts, limited to no
22. According to the 2014 Census of Agriculture, the average area per holding in the household sector on the island of Mauritius worked out to 0.6 hectares.23. Boodia, N. ( 2003 ). Prospects, Constraints and Opportunities for Fruit and Vegetable Processing in Mauritius. Food and Agricultural Research Council, Mauritius.
establishment of farmers’ groups and cooperatives that could have helped structure the market and improve its competitiveness through economies of scale.
As most smallholder farmers do not have the capacity to produce high value added products for export individu-ally, these producers need to group together in order for the sector to grow. In order to improve the structure and the coordination of the market, the Strategy will foster the establishment of a single authority with a view to promot-ing and supporting agro-industry under one roof ( also developed later in this document ). In addition, the existing system for the collection of onions, garlic and potatoes implemented by AMB could be expanded to other vari-eties of fruits and vegetables, and collection points and certified storage centres with the required facilities ( grad-ing, packaging, etc. ) could be established.
� Severity : ● ● ● ● ● � Value chain segment : Entire value chain � PoA reference : Activities 1.2.2. and 3.2.3.
The farming community is ageing and the new generation is unwilling to embark on agriculture as a profession
These two phenomena cause labour shortages in the agro-processing sector and prevent the sector from ex-panding. Because working-age young educated people are more interested in the services industry and other competing economic sectors, the Mauritian agricultural sector is facing a labour shortage, in turn leading to the ageing population of farmers. More generally, there is lim-ited knowledge about the potential of processed food, and processed fruits and vegetables in particular, in the country. This situation can be partly explained by the fact that the sector receives little attention from support institutions operating in the field of agriculture, which tend to focus more on processed fish and ( raw ) sugar. The cultivation of fruits and vegetables is mainly considered as subsistence farming, with little interest from farmers.
In order to trigger interest in farming and agro-processing from the younger generation, communication campaigns and career guidance on the potential of the agro-industrial sector will be launched at the national level.
� Severity : ● ● ● ● ○ � Value chain segment : Entire value chain � PoA reference : Activities 1.2.1., 1.3.3. and 3.4.4.
27VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
CAPACITY DIVERSIFICATION
The manufacture of processed products with high added value is extremely limited in Mauritius
The processing of fruits and vegetables remains largely underdeveloped in the country, with a limited number of private companies currently producing and exporting high value added processed products. Because the cultivation of fruits and vegetables only generates limited interest from farmers, who mainly consider the activity as sub-sistence farming, the level of private sector investment that would allow the development of higher added value activities in agro-processing activities is extremely low.
In addition, the low adoption of technology in the pro-cessing industry, i.e. modern semi-industrial processing equipment, limits the development of the sector. The limited availability of adequate processing equipment, the limited knowledge of international markets and their requirements, and the uncertain supply and quality of in-puts also prevent the sector from producing value added products.
Value addition in manufactured products will contribute to an increase in revenue, improve export penetration into new markets and help develop product diversification. Improvements in value added and quality are also ex-pected to lead to improved sustainability of export mar-kets, which has been identified as being extremely low. One of the key objectives of this Strategy is to develop processing capacity in Mauritius for processing and ex-port of value added products, notably through fostering technology transfer.
� Severity : ● ● ● ● ○ � Value chain segment : Processing � PoA reference : Activities 2.1.1. to 2.1.3. and 2.4.1 to
2.4.6.
The low levels of R&D in the agro-processing sector limit the industry’s potential for product diversification and impede the development of new and innovative processed products
R&D activities appear to be insufficiently developed in the sector due to a lack of interest from farmers but also because of the absence of specific fiscal incentives to conduct such activities in Mauritius. As a result, and as stated above, the manufacture of innovative products with high added value is extremely limited in Mauritius
Incentives such as tax credits for R&D could play a ma-jor role in encouraging the development of higher value added and innovative products and manufacturing pro-cesses and would contribute to attracting investors to
establish production sites in Mauritius. Targeted tax in-centives in the form of an entitlement programme could be established to support producers, offsetting some of the costs associated with research activities and helping more businesses conduct R&D and innovate. Research infrastructure in agro-processing should also be further developed.
� Severity : ● ● ● ● ○ � Value chain segment : Entire value chain � PoA reference : Activities 2.2.1. to 2.2.3., 2.4.1. and 2.4.2.
The low level of domestic and foreign investment hinders the development of the agro-processing sector
As mentioned earlier, the food processing industry – and the processing of fruits and vegetables in particular – re-mains largely underdeveloped in Mauritius, with a lim-ited number of companies currently exporting a limited number of products including jams, marmalades, fruit pastes and special sugars. In order to increase the vol-umes produced, to develop new products and to create a wider range of quality products, significant investment in the sector is needed. The limited interest in labour-in-tensive sectors in Mauritius, the fact that the cultivation of fruits and vegetables is mainly considered as subsist-ence farming and the high aversion to investment risk of farmers partly explain the limited level of investment from established entrepreneurs in the country.
Investment promotion efforts ( treated separately ) are needed in the processed food sector in Mauritius to at-tract new investors but also to contribute to changing the current mindset.
� Severity : ● ● ● ● ● � Value chain segment : Entire value chain � PoA reference : Activities 2.4.3. to 2.4.6.
Limited access to finance hinders the growth of the sector
There is limited access to finance for smallholder farm-ers and exporters in the agricultural sector in general, with the exception of the sugar sector. Farmers, espe-cially resource-poor smallholders, are often unattractive credit candidates for financial institutions because of the unpredictable, fragmented and unstructured nature of their agricultural activities. There is a lack of suitable and affordable finance for smallholders operating in the sec-tor, especially for the processed fruits and vegetables segment. While funding is currently available from vari-ous sources, including specific grant schemes created to support the agricultural sector through the Development Bank of Mauritius, operators have difficulty applying to these programmes because of complex procedures and application processes.
28 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
These procedures should be simplified to ensure that a larger number of private sector actors can benefit from those programmes. Additional information and guidelines should be provided to applicants on the preparation of applications. Financial support and banking facilities at attractive terms and conditions for innovative agro-pro-cessors should also be fostered by encouraging com-mercial banks to offer low interest rate loans. This financial support will be accompanied by appropriate market re-search / insurance schemes to prevent bad debts.
� Severity : ● ● ● ○ ○ � Value chain segment : Entire value chain � PoA reference : Activities 1.2.3., 2.4.1. and 2.4.2.
DEVELOPING SKILLS AND ENTREPRENEURSHIP
The lack of technical expertise in the field of fruit and vegetable processing limits the development of the industry towards higher value added production
The development of the workforce capacity in the agri-cultural sector was an important consideration through-out the Strategy development process because technical know-how appears to be lacking, notably in SMEs. The main technical problems faced by these enterprises in-clude the lack of expertise to determine shelf life, the lack of know-how on packaging and presentation of their prod-ucts, and little knowledge on semi-industrial processing equipment. Although agricultural training programmes exist locally, professionals operating in the sector agreed
that the quality of the degree trainings provided in Mauritius is insufficient, resulting in locally trained peo-ple not being proficient in the technical skills needed to meet industry requirements. Stakeholders also indicated that none of the competencies required in the processed food sector, such as agro engineers and food technolo-gists with an industrial background, are currently available in country. In addition to the lack of technical know-how, the expansion of the agro-processing sector is also con-strained by smallholders’ lack of business skills.
In order to develop the agro-processing industry in Mauritius, it is of utmost importance that the skills of the workforce are improved throughout the sector’s value chain through the development of a variety of training programmes. The Strategy will address the need for im-proved knowledge and hands-on skills in food process-ing by developing and delivering, in close collaboration with universities and training institutions, targeted training courses on appropriate technologies and the latest tech-niques, food preservation techniques, use of semi-indus-trial processing equipment and food packaging, among others. The involvement of universities, agronomists and other experts, as well as local companies, will be essential in this regard. Training programmes in business skills on specific topics relevant to the development of the agro-processing sector, such as innovation management, busi-ness management, marketing strategy, etc. will also be launched as part of the Strategy.
� Severity : ● ● ● ● ○ � Value chain segment : Entire value chain � PoA reference : Activities 2.1.1. to 2.1.3.
Photo: Miwok (CC0 1.0), framboises-de-lle-maurice
29VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
BUSINESS ENVIRONMENT CONSTRAINTS
Box 3 : Border gear issues
� The lack of transparency of the market generates uncertainty and price fluctuations � Ineffective market information systems � Inappropriate protection of intellectual property, patents and brands � The number of permits and licences required to conduct business or carry out exports
is an obstacle for operators � Lack of coordination among TISIs � The National Quality Infrastructure in Mauritius is not up to international standards � Mauritius is not equipped yet to be able to accompany local operators in their
GLOBALG.A.P. certification process � No proper enforcement of existing national standards and regulations in the field of
agriculture, notably to regulate the use of chemicals � Information asymmetries between farmers and TISIs in the field of research � Poor linkages between the industry and academia in the field of research � Obtaining internationally recognized certification and standards has financial implications
for the sector’s operators � High freight costs and port charges � High certification, product analysis and testing costs
INFRASTRUCTURE AND REGULATORY REFORM
The lack of transparency of the market generates uncertainty and price fluctuations, negatively impacting the business environment
Marketing logistics for agriculture are poor in Mauritius and the profitability for planters has often been questiona-ble in view of the poor marketing system under which they operate. To market their produce at the local level, most planters still resort to the auction markets of Port Louis, Vacoas and Flacq that currently regulate the wholesale marketing of fruits and vegetables. This situation is con-sidered unsatisfactory by almost all value chain operators because a lack of transparency in this system has often been reported and a price control, ensuring a decent mar-gin of profit to producers, seems difficult. Overall, there is a lack of readily available market information to planters and producers, in particular about domestic market prices.
To address these issues, the setting up of a nation-al wholesale market is currently being discussed at Government level. It is envisaged that the ‘wholesale mar-keting of fruits and vegetables will be reorganized at na-tional level through concentration of volumes in a single
place’.24 The national wholesale market will be managed by AMB. The setting up of a network to collect, analyse and disseminate production, market, price and trade in-formation for the agro-processing sector will also contrib-ute to enhancing transparency.
� Severity : ● ● ● ○ ○ � Value chain segment : Entire value chain � PoA reference : Activities 1.2.2., 3.1.3. and 3.1.4.
Past market information system initiatives proved ineffective
Poor marketability is often the major cause of substantial losses incurred by planters. The suboptimal organization of production is often linked to surpluses of commodi-ties on the market at some times and severe season-al shortages at others. To this effect, timely availability of market information is essential. Initiatives such as the Agricultural Production and Market Information System
24. Government of Mauritius Information Service ( 2015 ). Stakeholders convened for consultative meeting on national wholesale market, 3 September. Available from www.govmu.org / English / News / Pages / Stakeholders-convened-for-Consultative-Meeting-on-National-Wholesale-Market-.aspx.
30 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
( APMIS ) online portal25 have been launched in the past to address market information issues but the tools are not regularly updated, which is a prerequisite in a constantly changing environment, and have consequently not suc-ceeded as expected.
Building on existing initiatives, the Strategy will support, through technical assistance, the setting up of a network that will allow speedy collection and dissemination of mar-ket information on various agricultural products to opera-tors, including production, prices, area under cultivation and market trends. This network will play a role in regulat-ing prices at the national level and hence ensure a reason-able margin of profit to producers, resolving the present difficulty. The establishment of such tools will be accom-panied by information campaigns targeted at operators to raise awareness about the existence of such platforms and promote their use.
� Severity : ● ● ○ ○ ○ � Value chain segment : Inputs and production � PoA reference : Activity 3.1.4.
Inappropriate protection of intellectual property, patents and brands creates unnecessary hurdles to growth
There is currently no national framework for patent pro-tection in Mauritius. The Patent, Industrial Designs and Trademarks Act 2002 provided for the signature of the Patent Convention Treaty – under the World Intellectual Property Organization – but the Act is not yet in force and neither has the Treaty been signed. As a result, patents registered with the Intellectual Property Office, under the aegis of MoFARIIT, are recognized and protected locally but not internationally. This situation is forcing exporters willing to register their trademarks or patents to seek intel-lectual property protection from internationally recognized bodies abroad.
Efforts will be made under the NES to advocate for the signature of the Patent Convention Treaty, the Madrid Protocol and The Hague System under the World Intellectual Property Organization to guarantee the neces-sary intellectual property protection for the agro-process-ing sector and more generally for the Mauritian economy.
� Severity : ● ● ○ ○ ○ � Value chain segment : Entire value chain � PoA reference : See NES document
25. APMIS, an initiative of the Ministry of Agro Industry and Food Security, is an online portal that provides information on production, prices, area under cultivation, market trends and business opportunities for various agricultural products.
TRADE FACILITATION ISSUES
The number of permits and licences required to conduct business or carry out exports is an obstacle for operators
The regulations, administrative procedures and documen-tation requirements that govern how business is done in Mauritius act as a disincentive for an operator consider-ing developing agro-processing activities for export. As part of the strategy to attract new investors in Mauritius, efforts will be made to offer procedural incentives and to set up a one-stop shop to reduce bureaucracy, in par-ticular regarding the number of permits and licences re-quired for export.
� Severity : ● ● ● ○ ○ � Value chain segment : Entire value chain � PoA reference : Activity 2.4.3.
QUALITY OF INSTITUTIONAL SUPPORT
The lack of coordination and linkages between TISIs results in the absence of a clear vision for the sector
The large number of TISIs currently operating in the Mauritian agricultural sector has resulted in a scattering of resources and a duplication of efforts, an overlapping of functions, and TISIs competing with one another. As things are now, resources are wasted due to lack of coor-dination between the different institutions, in turn hamper-ing the effectiveness of the support provided and leading to the absence of a clear policy direction or strategy for the sector.
As improving the performance and the competitiveness of the sector also involves significant changes at the level of the institutional framework, operational efforts will con-centrate on enhancing inter-institutional collaboration in the agro-processing sector. The roles and strategies of the public institutions involved with the agro-processing sector should be revisited and their actions to support the farming community aligned.
The current situation and the confusion of roles between the different actors that transpires from it highlight the need for the establishment of a single authority to act as a one-stop shop to promote and support the industry under one roof. The entity could take the form of an inter-branch organization under the aegis of the ministries in charge and functioning on the basis of a public–private partnership model. The objective will be to agree on a common agenda and a long-term strategy to support the sector and pave the way for a comprehensive agri-cultural policy.
31VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
� Severity : ● ● ● ● ● � Value chain segment : Entire value chain � PoA reference : Activities 3.2.1. to 3.2.3.
The National Quality Infrastructure in Mauritius is not up to international standards
Quality management is a critical buyer’s requirement that can shut out a market altogether if standards are not met. Therefore, maintaining quality levels conforming to international standards is extremely important. However, as the Mauritius Accreditation Service ( MAURITAS ), the public accreditation body, is not yet a signatory of the International Laboratory Accreditation Cooperation ( ILAC ) Mutual Recognition Arrangement ( MRA ),26 products cer-tified by a body accredited by MAURITAS, such as MSB laboratories or the Food Tech Lab, are not currently ac-cepted by international importers. There are consequently no internationally recognized laboratories capable of cer-tifying food and processed food products in the country, leaving no other choice to agro-processors but to seek the services of internationally recognized certification bodies to export, which contributes to increasing certifi-cation costs for enterprises.
It is essential for the industry that MAURITAS becomes a signatory of the ILAC MRA in order to achieve interna-tional recognition. A critical step towards achieving that goal is the full independence of MAURITAS vis-à-vis the public authorities, and MICCP ( Industry Division ) in this particular case. Once full membership status is obtained, MAURITAS will be able to assess and accredit conformity assessment bodies according to the relevant international standards, including testing laboratories.
� Severity : ● ● ● ● ● � Value chain segment : Marketing and distribution � PoA reference : Activity 2.3.1.
Mauritius is not equipped yet to be able to accompany local operators in their GLOBALG.A.P. certification process
GLOBALG.A.P. certification, which confirms that require-ments related to pre- and post-harvest activities in ag-riculture are met, is essential for the sector because it has become a key condition for access to international markets, and Europe in particular.27 This certification ap-plies only to fresh produce and does not cover process-ing activities.
26. MAURITAS is currently an associate member of ILAC.27. GLOBALG.A.P. is a system of recognized international standards, created on the basis of the requirements of Good Handling Practices, Good Management Practices and HACCP, which aims to ensure safety of agricultural products and compliance with existing quality and technical requirements.
Operators should be encouraged and assisted to ap-ply for this certification as very few of them are currently GLOBALG.A.P. certified. At present, companies willing to be certified must pay consultants from abroad to ac-company them through the process and must also pay certifying agencies to come to Mauritius for certification.
The Strategy will contribute to providing technical as-sistance for the progressive development of an initiative that is currently being jointly undertaken by MSB and FAREI, and consists of proposing an equivalent certi-fication, which is MAURIG.A.P.. Standards under the MAURIG.A.P. initiative have already been developed but the scheme has not yet been enforced. Although MAURIG.A.P. is based on GLOBALG.A.P., it would not have international recognition and cannot replace the GLOBALG.A.P. certification when it comes to exports. However, any MAURIG.A.P. certified operator that applies for GLOBALG.A.P. certification will already be equipped to go through the GLOBALG.A.P. certification process.
� Severity : ● ● ● ○ ○ � Value chain segment : Marketing and distribution � PoA reference : Activity 2.3.5.
There is no proper enforcement of existing national standards and regulations in the field of agriculture, particularly to regulate the use of chemicals.
As mentioned earlier, as a significant share of planters do not adhere to the established protocol, numerous cases of misuse of agrochemicals such as fertilizers and pesti-cides have been reported in the production of fruits and vegetables in Mauritius, calling into question the safety of domestic production. This risk is amplified by the inef-fectiveness of the enforcement of existing regulations and standards – primarily governed by the Chemical Fertilizers Control Act 1980 and the Dangerous Chemicals Control Act 2004 – resulting in harmful or potentially harmful prod-ucts for use by consumers being distributed on the do-mestic market. While it is not clear if tests and controls are being carried out to assess the level of chemicals being used, it is widely recognized that they are not properly targeted, allowing most farmers who do not respect the regulations to fall between the cracks. Controls and tests currently performed on crops by FAREI are carried out at the request of producers. The apparent lack of traceabil-ity with regards to pesticide control in Mauritius further complicates the matter.
A first step towards the effective enforcement of existing legislation and protocols regulating the use of chemicals in the agricultural sector is to conduct of comprehensive review of the legal framework in place, particularly the Acts mentioned above. As also envisioned in the Strategic Plan 2016–2020 for the Non-Sugar Sector, recommenda-tions will then be formulated to adopt and enforce a new
32 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
strategy to regulate the use of agrochemicals in Mauritius. The creation of an enforcement body to regulate the con-duct of tests and analysis on agrochemicals has been envisaged. The present Strategy will also support sensi-tization campaigns on the safe use of agrochemicals and will mobilize resources to raise awareness and promote organic farming and the use of biofertilizers and pesti-cides. Furthermore, since January 2014, an experiment station of FAREI at Pamplemousses has been converted as a model to showcase production of fruits and vegeta-bles without agrochemical inputs.28
� Severity : ● ● ● ● ○ � Value chain segment : Inputs � PoA reference : Activities 1.4.1. to 1.4.4.
Information asymmetries between farmers and TISIs in the field of research limits the potential for developing new products
This situation exists due to the limited capacities of FAREI,29 which is responsible for conducting research in non-sugar crops, livestock and forestry, and for providing an extension service to farmers in Mauritius. Another key role of the organization is to promote dissemination and practical application of research results. However, insuf-ficient human and financial resources at FAREI are limit-ing the scope of its activities and negatively affecting the quality of the support provided in the field.
Although the quality of the agricultural research conduct-ed by FAREI has not been subject to question, it is widely acknowledged that research results have not been ad-equately shared with operators in the field and that the necessary linkages with marketing and commercialization have not yet been established. More generally, it was re-ported that researchers do not work with farmers, indicat-ing that more efforts are needed in relation to extension services to get the message across, to encourage and not to coerce.
Based on a comprehensive gap analysis, the Strategy will work towards reinforcing FAREI with a view to provid-ing the organization with the necessary tools and skills to extend its reach and scope and more efficiently sup-port the development of the agricultural sector and, as a consequence, the agro-processing industry. Efforts will be made to upgrade existing equipment and to improve the quality and availability of extension services through targeted capacity-building activities and by creating the conditions for the recruitment of additional staff.
28. Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p. 36.29. FAREI was established on 14 February 2014, as per the FAREI Act 2013, to take over the functions of the Food and Agricultural Research Council and the Agricultural Research and Extension Unit.
Through the development of a national programme for agricultural extension, the Strategy will also contribute to strengthening agricultural R&D and will improve access to extension services for farmers. Mechanisms for sys-tematic dissemination of information between research institutes and operators in the field will also be estab-lished, with a view to linking new products or processes arising from research activities and their marketing and commercialization.
� Severity : ● ● ● ● ○ � Value chain segment : Raw materials production and
marketing and distribution � PoA reference : Activities 2.2.1. to 2.2.3.
Poor linkages between the industry and academia in the field of research impede the development of the sector
While universities and industry are already working to-gether, notably under the Youth Employment Programme, existing linkages remain weak and insufficient, making it difficult for the industry to find the expertise needed to conduct research activities. As indicated earlier, recruiting qualified agronomists, agro engineers and food technolo-gists appears to be challenging. Backward and forward linkages need to be developed with research institutions such as FAREI and the Mauritius Research Council, as well as universities, to develop R&D programmes specifi-cally designed for the processed food industry.
To tackle the issue and in order to align the education in-frastructure with the requirements of industry, the Strategy will foster greater collaboration between private compa-nies, universities and training institutions to develop train-ing courses to improve knowledge and hands-on skills in food processing.
� Severity : ● ● ● ○ ○ � Value chain segment : Inputs and production � PoA reference : Activity 2.1.1.
COST OF DOING BUSINESS ISSUES
Obtaining internationally recognized certification and standards has financial implications for the sector’s operators
Standards such as HACCP and GLOBALG.A.P. are a tre-mendous asset to accessing the demanding European and North American markets. Given the limited resources of the majority of local operators, complying with volun-tary standards and certification systems appears to be a significant obstacle because they require important in-vestments, mostly to upgrade farms and production sites.
33VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
Consequently, not many producers have undertaken HACCP certification for the traceability of fruits and vegeta-bles, which further hampers their ability to export. Similarly, and as mentioned earlier, the fact that GLOBALG.A.P. standards have not yet been fully implemented in Mauritius is also eroding the competitiveness of Mauritian products. It has also been noted that, once certified in HACCP, SMEs sometimes have difficulties in applying the relevant pro-tocols and maintaining their certifications, mainly due to the lack of qualified manpower. Voluntary labels related to organic farming and fair trade certifications also ap-pear to be largely underdeveloped in Mauritius despite the booming international demand for those products
With a view to offsetting some of the costs associated with product certification and in order to facilitate the compli-ance of the sector with voluntary standards and certifica-tion systems, the present Strategy will help develop and strengthen specific schemes available to operators willing to export, and will work towards the modernization and implementation of efficient quality management systems. Procedures to access these schemes should also be sim-plified to ensure that a large number of private sector ac-tors can benefit from these programmes. The document will also support the elaboration of a national strategy for the development of the production of organic products in Mauritius and will provide technical assistance to support fair trade certification of cooperatives and processors.
� Severity : ● ● ● ○ ○ � Value chain segment : Entire value chain � PoA reference : Activities 2.3.5. to 2.3.8.
High freight costs and port charges negatively impact the competitiveness of the sector
The logistical isolation of Mauritius coupled with the lack of economies of scale in the sector leads to high costs of inputs as well as high costs of exports for producers, in turn affecting the competitiveness of the industry. The limited number of shipping lines between Mauritius and regional markets also results in high freight costs incurred by exporters, notably to export to Western Africa or en-claved countries. Cargo handling costs also appear to be relatively high.
To enhance the competitiveness of products from Mauritius to Africa vis-à-vis exports from Asia and other parts of the world, the Government introduced the Freight Rebate Scheme in 2012 for firms exporting to Africa and Réunion.30
30. The Freight Rebate Scheme consists of a 25 % refund of basic freight costs per container exported, up to a maximum of US $ 300 per standard container of 20 feet. Eligible companies should be registered with AMB and the exported products shall be either unprocessed or minimally processed ( i.e. produce which is peeled and vacuum packed ; or peeled, sliced / carved and vacuum packed ; or peeled or dried and vacuum packed. The Scheme currently applies to 44 ports in Africa and Réunion Island and is open to all shipping lines.
In the 2015–2016 Budget Speech, local authorities also an-nounced the setting up a regional shipping line to expand regional trade and the role of Mauritius ports in the region.
� Severity : ● ● ○ ○ ○ � Value chain segment : Marketing and distribution � PoA reference : See NES document
The lack of harmonization of the regulatory framework for the agro-processing sector regarding testing and certification creates unnecessary hurdles to growth and generates significant costs for agro-processors
Firstly, because the tests conducted by Mauritian labo-ratories accredited by MAURITAS are not recognized by most international importers, processed food companies have no choice but to seek the costly services of accred-ited and internationally recognized certification bodies such as SGS in order to export their products. This situa-tion sometimes leads exporters to have the same product analysed and tested twice, at two different laboratories, in order to comply with both the Mauritian requirements, governed by the Food Act, and export market quality re-quirements. For instance, for each consignment being exported to Kenya, the Kenyan Bureau of Standards re-quires tests and inspections that can only be carried out by international inspection, product testing and certifica-tion companies such as SGS or Intertek.31 More generally, exporters’ complaints concerned limited or inappropriate facilities in Mauritius to conduct the tests.32
A concerted effort needs to be made to harmonize and streamline the regulatory framework regarding testing and certification in Mauritius, namely by clearly specifying the certifications needed and from which eligible laboratories they can be obtained, and by streamlining the administra-tive processes related to validation of the tests and con-trols performed. A gap analysis to determine the norms and standards requirements of the agro-processing sec-tor and the services currently provided by testing labo-ratories in Mauritius will also be conducted, with a view to upgrading laboratories to allow them to issue interna-tionally recognized food safety certificates necessary for value added exports of foodstuffs.
� Severity : ● ● ● ○ ○ � Value chain segment : Marketing and distribution � PoA reference : Activities 2.3.2. to 2.3.4.
31. MSB worked out a Memorandum of Understanding with the Kenyan Bureau of Standards in order to be recognized by the Kenyan Bureau but it has not yet been validated by the Kenyan authorities.32. International Trade Centre ( 2014 ). Mauritius : Company Perspectives – An ITC Series on Non-Tariff Measures, p. xiv.
34 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
MARKET ACCESS CONSTRAINTS
Box 4 : Border-out gear issues
� High concentration on a few export markets � Difficulties complying with conformity assessment measures applied by partner countries � Importing raw material poses the problem of ROO � Fierce competition from imported products � Limited use of contract farming with domestic and international buyers � Limited knowledge of international market access requirements � Fragmented approach in export promotion and branding efforts
MARKET ACCESS AND POLICY REFORM
The high concentration on a few export markets is a risk for exporters
With France capturing more than half of the domestic exports of HS 20 products ( vegetables, fruits, nuts, etc.., food preparations ) in 2015, of which 32 % are shipped to Réunion, the industry appears to be highly dependent on market conditions in France and vulnerable to external economic shocks affecting this economy. Greater mar-ket diversification will be essential for the domestic agro-industry to spread risk and to participate more actively in international trade.
� Severity : ● ● ○ ○ ○ � Value chain segment : Distribution � PoA reference : Activities 3.4.1 to 3.4.3.
Mauritian exporters are facing difficulties complying with conformity assessment measures applied by partner countries
Note : The following section was retrieved from an ITC re-port published in 2014 assessing the impact of non-tariff measures on the business sector, based on a large-scale survey conducted directly with companies in Mauritius.33
Among the burdensome regulations encountered by ex-porters, 87 % were imposed by partner countries ( mainly EU Member states and the Common Market for Eastern and Southern Africa ( COMESA ) ) and only 13 % were ap-plied by Mauritius. Most non-tariff measures reported by
33. International Trade Centre ( 2014 ). Mauritius : Company Perspectives – An ITC Series on Non-Tariff Measures, p. xiv.
exporting companies ( accounting for 65 % ), as applied by partner countries, were conformity assessment meas-ures such as product certifications and testing meas-ures. Technical requirements followed, where 21 % of the companies reported burdensome effects, for example labelling requirements and storage conditions. Some companies reported certification measures, which in-volved destination countries requiring Hazardous Analysis and Critical Control Points ( HACCP ) and sanitary and phytosanitary ( SPS ) certificates. Product certifications were viewed as too strict or difficult to comply with.
Complying with SPS measures to penetrate the higher-end European and North American markets has indeed proven to be difficult because the limited technical and financial capacity of Mauritian smallholder farmers impedes their ability to implement the relevant requirements and proce-dures. In particular, because several analysis certificates required by importers for processed food products can-not be obtained in Mauritius, local producers are forced to seek competent international expertise to have their products certified. The non-availability of such services in-country contributes to the high certification costs faced by local producers and acts as a disincentive to engage in export. Complying with technical barriers to trade / SPS measures is further complicated by the fact that there is no proper enforcement of existing national standards and regulations in the field of agriculture, particularly to regulate the use of chemicals, potentially resulting in high levels of chemical residues in the domestic production.
The present Strategy will foster the adoption of policies, standards and practices to facilitate the compliance of the sector with key importers’ SPS requirements. It will be important to ensure that Mauritian legislation in this area meets the international obligations of the World Trade Organization SPS Agreement and that rules are correctly
35VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
implemented in the internal market and abroad ( imports from third countries ). Efforts will be made to develop of efficient quality management systems such as the HACCP one.
� Severity : ● ● ● ● ● � Value chain segment : Marketing and distribution � PoA reference : Activities 1.4.1. to 1.4.4. and 2.3.1. to
2.3.4.
Importing raw material poses the problem of ROO
As the availability of quality raw materials, i.e. fruits and vegetables, is limited and because the labour costs in Mauritius are increasing, food processors operating in the country may be tempted to import cheaper raw materials from neighbouring mainland African countries. Such a practice would however raise the problem of ROO, i.e. the criteria needed to determine the national source of a prod-uct, an essential factor because duties and restrictions in several cases depend on the source of imports. With a wide variation in the practice of governments with regard to ROO, substantial transformation of the final product must have occurred in the country in order for it to be exported as a product of Mauritian origin. Taking into ac-count the ROO criteria needed to determine the national source of a product, the Strategy will explore opportuni-ties to strengthen regional integration and linkages for the supply of raw materials.
� Severity : ● ● ○ ○ ○ � Value chain segment : Marketing and distribution � PoA reference : Activity 1.1.3.
Local producers face fierce competition from imported products
Given the relatively low quality and high price of raw materials in Mauritius, coupled with the lack of market intelligence, producers find it difficult to compete with in-ternational suppliers, as illustrated by the overall self-suf-ficiency ratio of food production of less than 30 %. As a result, voices are being raised to protect an industry that is still in its infancy and to enable the sector to thrive and to become more competitive in the longer term. Currently, though, because the country is bound by World Trade Organization rules, the level of duties on food product imports to Mauritius are extremely low, allowing interna-tional suppliers to penetrate the Mauritian market with superior, higher value added products at the expense of local producers.
As stated above, it will be important to ensure that Mauritian legislation meets the international obligations of the World Trade Organization SPS Agreement and that rules are correctly implemented not only in the internal market but also for imports from third countries.
� Severity : ● ● ● ○ ○ � Value chain segment : Marketing and distribution � PoA reference : Activities 2.3.2. and 2.3.3.
The use of contract farming to secure long-term business agreements with domestic and inter-national buyers is limited
To improve the quality of the raw materials in Mauritius, the development of contract farming could be encour-aged. This agricultural production system is carried out according to an agreement between a buyer and farm-ers which establishes conditions, including the quality required and the price, for the production and marketing of a farm product or products. Such a system allows for better management of contract defaults and buyers’ risk and encourages farmers to improve product quality.
The Strategy will encourage farmers and buyers to en-gage more extensively in contract farming by undertak-ing targeted information campaigns on contract farming, developing policies and establishing a more formalized and structured process for contract farming agreements.
� Severity : ● ● ● ● ○ � Value chain segment : Marketing and distribution � PoA reference : Activity 3.1.2.
TRADE AND BUSINESS SERVICES SUPPORT
The limited knowledge of international market access requirements, standards and compli-ance hinders export development
If some institutions have been providing support to Mauritian exporters34, the lack of market intelligence still appears to be a major constraint for Mauritian produc-ers and potential exporters, as very little information is available on issues such as market requirements, distri-bution channels, packaging requirements and duty ac-cess, among others. There is, in particular, very limited knowledge about the preferential market access oppor-tunities granted to Mauritius following the signature of sev-eral trade agreements and which remain untapped. This inadequate knowledge of market requirements not only negatively affects the development of processed food exports from Mauritius, it also prevents the design of rel-evant market entry and promotion strategies. Insufficient or incomplete information prevents exporters from adopt-ing the market requirements critical to succeeding in a specific target market.
34. For example, Enterprise Mauritius conducts market research and disseminates information.
36 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Initiatives such as ‘Trade Easy’35 have been launched in the past to tackle the issue and provide information on import and export procedures but the online tool has not encountered the success expected because it is not regu-larly updated, a prerequisite in a constantly changing en-vironment. Experience has shown that the setting up of such tools providing market access information should be accompanied by a continuous monitoring system to keep the online platforms up-to-date. Using the appropri-ate communication channels to inform the sector’s stake-holders about the existence of such online tools is also crucial to ensure the success of such initiatives.
Improving the knowledge of international market access requirements will be a priority of the Strategy. Building capacity on these issues will be essential to allow the industry to identify international business opportunities – and to develop corresponding marketing strategies – while mitigating some of the costs and risks related to new market development, ultimately resulting in greater competitiveness. Building on existing tools for the provi-sion of timely and relevant market intelligence should also be strengthened and upgraded with a view to improving the industry’s knowledge and understanding of interna-tional market access requirements. Targeted campaigns and trainings to inform operators about the existence of such tools and promote their use will also be carried out.
� Severity : ● ● ● ● ● � Value chain segment : Marketing and distribution � PoA reference : Activities 3.3.1. to 3.3.3.
35. ‘Trade Easy’, under MoFARIIT ( International Trade Division ), is an online tool providing information on regulations, duties and taxes, and controls and shipment documents required for import and export operations.
NATIONAL PROMOTION AND BRANDING
The fragmented approach in export promotion and branding efforts limits the visibility of the sector
Building a strong national brand would allow the sector to advance the ‘country-of-origin’ effect, to promote exports and to attract investors and a skilled workforce, in turn strengthening the export competitiveness of the country. The national brand could then serve as an umbrella under which sub-brands could be developed, in particular for the agro-processing sector.
To date, the country branding approach appears to be fragmented in Mauritius as several organizations have launched their own branding initiatives, such as the EM ‘Mauritius Made with Care’ slogan or the ‘Made in Moris’ logo recently created by the Association of Mauritian Manufacturers ( AMM ), even if some members of the Association seem reluctant to use it for export purposes. An increasing demand for private labelling among pro-ducers in Mauritius has also been observed, supported by the Business Growth Scheme Unit ( recently incorpo-rated to SMEDA ). These branding efforts should not hide the fact that there is currently no brand specifically es-tablished for the Mauritian food industry and no targeted national promotion campaign for the industry.
� Severity : ● ● ● ● ○ � Value chain segment : Marketing � PoA reference : Activity 3.4.4.
SOCIAL AND ENVIRONMENTAL CONSTRAINTS
Box 5 : Development gear issues
� The development of the industry could have a high socioeconomic impact � Youth are not willing to engage in the agro-industrial sector � There is scope for strengthening regional integration and linkages, both upstream and
downstream from production � Lack of enforcement of regulations on planting, chemicals, pesticides, etc. is a serious
danger for the environment � High levels of energy consumption and related emissions � The agricultural sector appears unprepared to face climate change
37VALUE CHAIN ANALYSIS AND SECTOR DIAGNOSTICS
POVERTY ALLEVIATION AND GENDER INCLUSIVENESS
There is great potential to create employment and business opportunities in the agro-processing sector, notably for young entrepreneurs and women
In 2014, employment in agricultural activities exclud-ing sugar cane, tea and fishing stood at 25,430, repre-senting 57 % of the total employment in the agricultural sector. Employment generated by agro-processing ac-tivities should be added to this figure but more disag-gregated data on this industrial sector would be needed in order to do so.36 Given the importance of the sector in terms of employment, the development of the pro-cessed food industry could significantly boost job crea-tion and generate direct and indirect jobs, especially in rural communities.
Looking at gender inclusiveness, although the sector em-ploys mainly men ( 53 % ), 11,900 women were employed in agricultural activities excluding sugar cane, tea and fish-ing ( non-inclusive of women engaged in agro-process-ing activities ). The development of the agro-processing industry could therefore have a significant impact on fe-male employment.
� Severity : ● ● ● ○ ○ � Value chain segment : Entire value chain
Youth is not willing to engage in the agro-industrial sector
Despite the high unemployment rate among young peo-ple in Mauritius – around 20,700 ( 49 % ) of the unemployed were aged below 25 years at the third quarter of 201537 – operators are facing difficulties in bringing ‘new blood’ into the agricultural sector. The younger generation’s clear lack of interest in pursuing farming can be partly explained by the fact that young people are more attracted by the services industry, which is said to be more remunerative and physically less demanding. In addition, potential new planters may be discouraged by the frequent cases of theft of crops in the field that occur in Mauritius. With the ageing population of farmers, the situation is becoming alarming because the agricultural sector will not be able to thrive if the lack of interest in farming among young people continues.
National communication campaigns and career guid-ance on the potential of the agro-processing industry
36. Statistics Mauritius only provides data for ‘food products’, which also include products such as processed fish and meat as well as other food preparations not covered by this Strategy.37. Ibid.
will be encouraged under this Strategy to trigger interest from youth. Training courses to improve knowledge and hands-on skills in food processing will also be developed to encourage young students to enter farming and agro-processing activities.
� Severity : ● ● ● ● ○ � Value chain segment : Entire value chain � PoA reference : Activities 1.3.3. and 2.1.1. to 2.1.3.
REGIONAL DEVELOPMENT AND INTEGRATION
There is scope for strengthening regional integration and linkages, both upstream and downstream from production
Despite preferential market access to the COMESA and SADC markets that Mauritian exports enjoy, the benefits are currently relatively poor due to weak market intelli-gence and insufficiently developed in-market support for these markets. Indeed, as indicated in the Strategic Trade Development Roadmap, the lack of market information and market surveys makes it challenging for exporters to increase penetration in these markets. Although Mauritius has a relatively robust institutional presence in regional trading blocs such as SADC and COMESA, there is sig-nificant scope for improvement to benefit more widely from these preferential market accesses.
Upstream activities, i.e. the supply of raw materials, such as the development of fruit and vegetable crops in region-al countries such as Madagascar and East African coun-tries to benefit from advantageous climatic conditions and the availability of a low-cost labour force could be further developed. Raw products would then be shipped for pro-cessing in Mauritius. With regards to final processed food product exports, the sector needs to strengthen or devel-op trade relationships with regional markets. In order to do so, a first step will be to conduct comprehensive market surveys and to design and implement in-market support programmes for the agro-processing industry.
� Severity : ● ● ○ ○ ○ � Value chain segment : Entire value chain � PoA reference : Activities 1.1.3. and 3.4.3.
ENVIRONMENTAL SUSTAINABILITY AND CLIMATE CHANGE
The environmental conditions surrounding the develop-ment of the agro-processed food sector, including the im-plementation of effective waste disposal methods and the use of chemicals, must be managed in order to strength-en the sector’s development potential.
38 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
The lack of enforcement of regulations on planting, chemicals, pesticides, etc. is a serious danger for the environment
There is, to date, no proper enforcement of existing na-tional standards and regulations on the use of agrochemi-cals, including pesticides, herbicides and fertilizers. The misuse of such products by farmers and the lack of con-trol by the authorities leads not only to the potential dis-tribution of harmful or potentially harmful products to consumers but also to soil degradation, and surface and underground water pollution. In addition, despite the en-try into force of the Dangerous Chemicals Control Act38 in 2004, it seems that the hazardous waste management system is deficient – for obsolete pesticides, for instance – therefore raising the question of the environmental sus-tainability of the sector’s activities.
As a first step, specific and targeted studies should be conducted to evaluate the environmental footprint of the agro-processed food sector in Mauritius, including the collection of data on amounts of hazardous waste be-ing generated, stored and disposed of, and actions that could be taken to tackle the issue identified. Second, it will be of the utmost importance to enhance awareness among producers about the rational use of agrochemi-cal products.
� Severity : ● ● ● ● ○ � Value chain segment : Production � PoA reference : Activities 1.4.1. to 1.4.4.
38. The Dangerous Chemicals Control Act 2004 is an Act ‘to provide for the prevention of damage to health and to the environment caused by dangerous chemicals and for better protection of the workers, members of the public and the environment against dangerous chemicals’.
The food processing sector is characterized by high levels of energy consumption and related emissions
As the food processing industry uses energy-intensive processes, the electricity consumption of food process-ing facilities is relatively high. While little can be done at the plant level to reduce that consumption, alternative sources of energy and energy efficiency systems could be developed at the national level to ensure that economic growth occurs with the environment in mind.
� Severity : ● ● ● ○ ○ � Value chain segment : Processing � PoA reference : See NES document
The agricultural sector appears unprepared to face climate change
Although the actual impact of climate change on crop yields has not been scientifically quantified yet, with the climate change scenarios envisaged in coming decades, adverse climatic events are more likely and will eventu-ally pose additional risks for local production of raw ma-terials. Producers already agree that climate conditions have become increasingly unpredictable over the past decades. The unpredictable and inconsistent rainfalls that have recently been observed have a significant, and po-tentially devastating, impact on agricultural crops. This has significantly affected national agricultural production and its predictability, and has created a certain level of uncertainty – and risk – among Mauritian farmers, adding to the reluctance observed among the younger genera-tion to enter into farming.
� Severity : ● ● ○ ○ ○ � Value chain segment : Production � PoA reference : See NES document
39THE WAY FORWARD
THE WAY FORWARD
The industry being at the infant stage of development, the sector’s strategic orientation should follow a struc-tural approach. The strategy for the next five years will thus be primarily built around a goal of reinforcing the domestic supply of raw materials and increasing the com-petitiveness of the farming sector as well as the organi-zation between the various operators of the value chain. Strong emphasis will also be placed on improving the business environment and raising awareness about the potential of the industry. The next step will then be to look into specific ways to develop further processing activ-ities in Mauritius, increase value addition and diversify the offering of Mauritian products in order to improve the performance and competitiveness of the industry in in-ternational markets.
VISIONThe processed food sector has demonstrated its potential to impart socioeconomic contributions to the Mauritian economy through export-led growth. In order to reinforce this contribution, competitive constraints and structural deficiencies along the four export development gears ( supply side, business environment, market entry and development side ) will be addressed and identified op-portunities will be leveraged. The following is a deline-ation of the proposed vision and strategic approach in this direction, agreed with all stakeholders of the agro-processing value chain.
“An innovative and competitive industry driven
by sustainability and inclusiveness
”
40 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
STRATEGIC OBJECTIVESThe vision set up for the strategy is delineated in three strategic objectives built around the key areas where ac-tion is required over the following five years.
Strategic objective 1 : Improve the production and productivity of raw materials suitable for processing
The potential of the agro-processing industry is severely affected by the poor performance of the domestic agricul-tural sector. Mauritius is confronted by several constraints that have posed severe impediments to agricultural de-velopment, including high production costs, inadequate storage capacities, misuse of agrochemicals, a low level of mechanization, reliance on traditional practices and lack of organization of the sector. However, if the Mauritian agro-processing industry is to develop so as to maximize its competitiveness, improving the production of raw ma-terials ( i.e. fresh fruits and vegetables ) in terms of both quantity and quality is a prerequisite.
In operational terms, this objective will be reached first of all through identifying and developing new varieties and characteristics of fruits and vegetables which are suitable for processing and which processed products
thereof enjoy strong demand on international markets. The opportunity to strengthen regional linkages for the supply of raw materials will also be explored. Another im-portant component under this strategic objective will be to enhance farming techniques and improve the physical infrastructure, particularly by establishing pilot farm initia-tives and by providing special long-term credit and tech-nical assistance to improve farm mechanization and the adoption of modern technology. Provision is also made to sensitize and train agricultural stakeholders includ-ing planters, farmers and agro-industrial entrepreneurs in the adoption of new technology and modern practic-es in their respective domains, with a view to promot-ing entrepreneurship and professionalism in the sector. Activities aimed at ensuring adequate use of pesticides in the agricultural sector will also be implemented under this strategic objective.
Strategic objective 2 : Improve the sector’s capacity and provide an enabling regulatory environment
To further develop agro-processing activities with an em-phasis on promotion of value addition to primary prod-ucts, it is of utmost importance to improve the sector’s capacities, including in the field of research. Promoting capacity-building in new technology with a view to en-couraging entrepreneurship appears to be fundamental in Mauritius, as the sector currently triggers little inter-est among the population and notably from the younger generation. Another key component under this strategic objective is the inculcation of the notion of quality at all levels of agricultural practices. With rising customer needs and demands, coupled with increasingly stringent norms regulating food and agricultural trade, quality has become a prerequisite for the development of the agro-processing industry and, most importantly, for the expansion of ex-port opportunities.
In operational terms, this objective will be reached through the development of training programmes aimed
at improving techniques for food processing and pres-ervation and also at improving the business skills of the different operators. Setting up an agribusiness incuba-tion centre will also offer entrepreneurs the opportunity to venture into agro-processing. In the field of research, the Strategy will look at improving the reach and effective-ness of FAREI, the main research body operating in the field of agriculture, through the development of mech-anisms aiming at linking new products or processes arising from research activities and their marketing and commercialization.
As it does not currently enable operators to comply with international standards, upgrading the National Quality Infrastructure in Mauritius is also a priority under this stra-tegic objective, to ensure that the accreditation and stand-ardization bodies are recognized worldwide. Technical assistance will also be provided to facilitate the compli-ance of processed products with voluntary standards
41THE WAY FORWARD
such as HACCP systems and the GLOBALG.A.P. stand-ards that are increasingly being demanded by retailers and consumers. These measures will be accompanied by capacity-building activities in quality-related issues at the production, handling, processing and sales levels.
Finally, it will be vital to incorporate specific policies for foreign direct investment ( FDI ) as well as domestic in-vestment in agro-processing in Mauritius, something that can be achieved by advocating and making policy pro-posals and recommendations to provide incentives to enterprises with the view to stimulating investment in the agro-processing sector.
Strategic objective 3 : Foster the sector’s integration and achieve greater market development
To become more competitive on the international scene, the agro-processing industry must be supported by a structured domestic market and a high level of integration among the various supply chain actors. Only by estab-lishing a solid foundation for restructuring the non-sugar agricultural sector and by improving the marketing con-ditions can the processing industry benefit from quality raw materials at more advantageous prices. In addition, efforts have to be made to achieve greater market pen-etration, notably in the field of export promotion and mar-ket intelligence.
Operationally, this translates to improving the structure of the local market by fostering a tighter collaborative ap-proach between all agricultural stakeholders through the development of cluster initiatives that will encourage effi-cient sharing of resources, information and know-how, and help achieve economies of scale. Efforts will also be made to promote more favourable marketing conditions by sup-porting the national wholesale market initiative, which aims to improve access to readily available market information for planters and producers, in particular about domestic market prices. As improving the performance and the com-petitiveness of the sector also requires a supportive institu-tional framework, operational efforts will also concentrate
on enhancing inter-institutional collaboration in the sector. To this effect it will be essential that a common strategic agenda is agreed with a view to enhancing collaboration with a more productive, demand-driven and target-orient-ed approach, also ensuring judicious use of resources.
Another key component under this strategic objective is to achieve greater market penetration for Mauritian prod-ucts. A first operational step towards reaching that goal is to ensure structured export development and promotion efforts. Greater participation in international trade fairs will be fostered and in-market support programmes for the sector will be designed and implemented. In order to im-prove the visibility of the sector, the Strategy will also sup-port the organization of a branding initiative through the elaboration of a comprehensive branding strategy specifi-cally designed for the Mauritian agro-processing indus-try. Finally, to improve the knowledge base of the sector on international market access requirements, timely and relevant trade information will be collected and dissemi-nated to traders and exporters through the development of reliable market information systems. Once the market information system is operational, regular training will be provided to exporters on collection, analysis and use of trade information to facilitate market entry.
42 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Figure 14 : The strategic scope
VisionAn innovative and competitive
industry driven by sustainabilityand inclusiveness
Strategic objective 3:Integration and achieve
Strategic objective 2:Improve the secto’s capacity
and provide an enablingregulatory environment
Strategic objective 1:Improve the productionand productivity of raw
materials suitablefor processing
LEVERAGING MARKET OPPORTUNITIESEven though the agro-processing sector in Mauritius re-mains relatively small in terms of value exported, consider-able scope exists for agribusiness growth and innovation as the demand for processed fruits in various forms is on the rise in both local and foreign markets. Indeed, with rising standards of living and consumer awareness of healthy lifestyles coupled with the recent observed trend of expanding consumption of convenience processed food items, there has been a gradual increase in the con-sumption of both preserved fruits and prepared or pre-served vegetables worldwide.
In this context, and in addition to import substitution ac-tivities supported by the public authorities to achieve a higher level of self-sufficiency, considerable opportunities exist, especially for products requiring minimal process-ing and transformation in the short term. Considering the high dependence of the agro-processing sector on the French market for its exports ( France, including Réunion, captured more than half of the sector’s exports in 2015 ), securing new markets will be crucial for Mauritian firms to reduce their vulnerability to external economic shocks affecting the French economy and to participate more actively in international trade, particularly targeting devel-oping markets in Africa and Asia.
Importantly, as highlighted in the Strategic Plan 2016–2020 for the Non-Sugar Sector, because of the limited price competitiveness of the commodities produced in Mauritius, there is a need to identify markets where Mauritius has a comparative advantage, such as niche markets for ethnic foods, to capitalize on the wide variety of exotic primary commodities available, many of which are amenable to agro-processing.39 Considerable export possibilities also exist at the regional level, notably under SADC and COMESA agreements.
The following key orientations are recommended for the sector.
Import-substituting distribution of processed fruits and vegetables requiring minimal processing
Mauritius currently relies on imports for more than 70 % of its food requirements, mostly for direct consumption. As the demand for convenience food is likely to increase in the future, prospects exist for import substitution locally, notably for processed food requiring minimal processing
39. Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors, p. 10.
43THE WAY FORWARD
and transformation. Such products include preserved or prepared tropical fruits and locally grown vegetables, fro-zen fruits and vegetables, and tomato sauce, among oth-ers. Although they involve a higher level of technological complexity, the potential for import substitution is also important for products such as fruit juices and sauces, especially tomato sauce. Import-substituting distribution could benefit from the highly developed tourism industry that represents an interesting market perspective where tourists are exposed to local processed products.
With the liberalization of the market, however, careful mar-ket analysis will be required to identify which Mauritian products have a competitive advantage compared to im-ported ones. Domestic investors in import substitution ac-tivities may be stimulated to compete by investing in the scale, quality and speed of their production processes, trucks, packaging, marketing, etc.
Key success factors :
� Price competitiveness ( notably through economies of scale )
� Access to high quality inputs � Attractive product presentation.
Expand exports of traditional products to established markets in the Indian Ocean region
Building on the existing trade relationships in the Indian Ocean region, and with Réunion, Seychelles and Madagascar in particular, expanding marketing efforts from Mauritius to this region is a natural step for estab-lished processors. Because demand varies greatly from one country to another, targeted market studies are need-ed to identify potential opportunities. However, it has been observed that there is a demand from Seychelles for fresh juices made in Mauritius and that red beans and chilli sauce are highly appreciated in Réunion. Madagascar, on the other hand, consumes cheaper products requir-ing minimal processing such as preserved potatoes. The relatively untapped market of Comoros could also present interesting prospects for Mauritian producers.
Key success factors :
� Price competitiveness ( Madagascar ) � Access to high quality inputs � Attractive product presentation ( Seychelles and Réunion ) � Sanitary safety and quality standards ( Seychelles and
Réunion ).
Exporting existing products requiring minimal processing to emerging markets, targeting the African continent
The African continent is an enormous future market for the global fruit and vegetable processing industry. As the African middle class grows, particularly in wealthy and politically stable countries such as South Africa, Kenya, Botswana and Ghana, demand for industry products from this continent is expected to grow, with much of this growth in demand forecast to be met by imports.40 Given its strategic location and its proximity to emerging African markets, Mauritius can greatly benefit from the recent de-velopments observed in these markets.
In addition, being a Member State of SADC and COMESA, Mauritius has the opportunity to expand its exports to these developing markets, benefiting from the Free Trade Agreements signed by these regional organizations. Mauritian products would be waived from Customs du-ties in SADC and COMESA Member States, thus enabling them to compete with imported products from non-mem-ber countries.
Key success factors :
� Price competitiveness � Access to high quality inputs.
Expand exports of traditional products, with slight adjustments, to Europe and France in particular
Capitalizing on the rising demand in these markets for processed fruits in various forms, including juices, and building on the already existing trade relationships with these countries, prospects exists to expand exports to developed European markets, and particularly the French one, with which strong linkages already exist.
In terms of products, from currently low value added prod-ucts such as preserved vegetables, prospects exist for exports of higher value added products such as sugar-based products. As indicated in the Strategic Plan 2016–2020 for the Non-Sugar Sector, although the process of making jams, jellies, fruit nectars and other beverages is well established in the country, it now requires ‘up-scaling, innovation and improvement in packaging and marketing to tap new markets’. Dehydrated tropical fruits also have good potential for the European market. In order to tap into that potential, Mauritius can capitalize on the fact that locally produced processed fruits have been acclaimed through international awards, enhancing the image of the country as a high quality food producer ( BOI ).
40. IBISWorld ( 2016 ). IBISWorld Industry Report, Global Fruit & Vegetables Processing, p. 8.
44 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Key success factors :
� Price competitiveness � Access to high quality inputs � Attractive product presentation � Sanitary safety and quality standards � ‘Mauritius brand’ recognition.
Higher value added processing for niche markets
Particularly in Europe, there is a small but quickly growing demand for tropical and ethnic products, notably from the Mauritian diaspora. Products such as pickles, sweet and sour, chilli pastes and other traditional Mauritian prepa-rations could benefit from the emergence of such niche markets, provided that they meet the sanitary safety and quality standards of the demanding European market. Targeted market studies are needed to identify such niche markets where Mauritius could have a compara-tive advantage.
Key success factors :
� Access to high quality inputs � Attractive product presentation � Sanitary safety and quality standards.
Role of investment
Exploiting the opportunity areas identified within the sec-tor value chain will require significant investment, from both domestic and foreign investors. Both FDI and do-mestic investment are seen as essential to accompany the ambitions of the agro-processing industry in Mauritius, a sector that lacks adequate investment in capital, knowl-edge and new technologies.
Net FDI outside of the real estate sector has remained very low, with a small exception for the financial services and construction sectors. FDI is non-existent in the agro-processing sector in Mauritius. Though there appears to be exploratory interest in the sector, foreign partners are not yet willing to invest, despite an enabling business envi-ronment. This neither contributes to the future productive capacity of the sector, nor to the transfer of the know-how and skills necessary for the industry to grow.
Factors of attraction exist, however, in the fruit and veg-etable processing sector, including :
� Mauritius’ strategic location and proximity to emerging African markets
� Counter-seasonal production for the northern hemi-sphere
� Huge market for fruit juices and other products to be derived from local production
� Import substitution opportunities requiring minimal processing and transformation
� Presence of a vast regional market in mainland Africa for the supply of fresh products
� Mauritius is signatory to a number of bilateral trade agreements / free trade agreements
� Stable political and economic environment � Enabling business environment � Competitive tax regime.
Structural adjustments to the value chain – value options and future value chain
Unlocking the latent potential of the agro-processing sec-tor will require transformations throughout the value chain. These adjustments will allow the sector to offer competi-tive levels of quality and type of produce. To this end, options for value retention, addition and creation have been identified.
Photo: Alexandra Golovko (ITC)
45THE WAY FORWARD
Table 4 : Value options for the processed food sector
Value retention : Secure production inputs and services locally and develop a high level of integration among supply chain actors
Value option How to implement Time frame
• Enhance farming techniques and improve physical infrastructure to increase productivity and reduce postharvest losses
• Develop pilot farm initiatives• Establish collection points and certified storage centres with
the required facilities• Provide financial support and technical assistance to
improve farm mechanization
Medium term
• Increase the local horticultural production to benefit from the market for fresh and preserved fruit juices that can be derived from it
• Enhance farming techniques and improved physical infrastructure
• Useful option for diversification on abandoned sugarcane lands
Medium-to-long term
• Build stronger linkages across the value chain, to structure the sector and alleviate difficulties in production
• Establish clusters for selected strategic commodities within targeted agroecological zones
• Encourage farmers to engage in contract farming• Support the national wholesale market initiative
Medium term
• Develop minimally processed food activities to minimize postharvest losses and food wastage
• Provide basic training to farmers on agro-processing• Sensitization of farmers on the benefits of such activities to
retain value
Short term
Value addition : Adjust the production of raw materials and develop new, higher value added product lines
Value option How to implement Time frame
• Expand the range of fruits and vegetables grown which can be dehydrated, frozen or processed into innovative convenience food
• Conduct an agronomic assessment across the country to identify the potential of different varieties of fruits and vegetables
• Conduct trials to identify new varieties of fruits and vegetables suitable for processing and for which there is significant international demand
Short term
• Produce quality raw materials in line with international best practices for value addition
• Foster the adoption of GAP• Streamline the use of agrochemicals
Short term
• Encourage SMEs to engage in import substitution activities for processed food requiring minimal processing and transformation
• Identify specific varieties for the purposes of processing• Develop protocols, norms and standards for minimally
processed and preserved products and fruit juices• Provide guidance, support and technical know-how
Short term
• Capitalize on the wide variety of exotic primary commodities available by encouraging farmers to engage in processing activities for value addition
• Initiate a project to set up an incubator to offer entrepreneurs the opportunity to venture into processing
• Offer financial support and banking facilities at attractive terms and conditions
• Develop the capacity of the sector for agro-processing
Short term
• Upscale, innovate and improve the packaging and marketing of established products to tap new markets
• Further develop R&D activities in the sector• Conduct training on processing techniques• Provide support schemes for the purchase of processing
equipment and machinery
Medium term
• Improve the visibility of the sector and promote the specificities of Mauritian food products
• Develop a brand specifically for the Mauritian food industry Medium term
46 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Value addition : Adopt internationally recognized quality standards
Value option How to implement Time frame
• Facilitate the compliance of the sector with HACCP standards
• Develop and strengthen schemes available to operators willing to obtain HACCP certification
Short term
• Encourage the implementation of GLOBALG.A.P. certification
• Support the development of MAURIG.A.P. certification• Train farmers• Evaluation and certification of GAP by accredited
organizations
Medium term
Value creation : Expand into value chains in associated sectors based on buyers’ requirements
Value option How to implement Time frame
• Encourage farmers to engage in biofarming and expand into organic product value chains
• Develop a national strategy to develop the production of organic products in Mauritius
• Develop bioproduction protocols• Establish dedicated biofarming zones• Provide support schemes for the purchase of equipment for
biofarming• Promote and raise awareness among producers and
consumers about the various benefits of organic farming
Medium term
• Initiate the development of a fair trade label
• Sensitize farmers on the importance of a fair trade label• Develop fair trade protocols
Medium term
Value creation : Expand output and capacity of the sector
Value option How to implement Time frame
• Expand the range of fruits and vegetables grown which can be dehydrated, frozen or processed into innovative convenience food
• Conduct an agronomic assessment across the country to identify the potential of different varieties of fruits and vegetables
• Conduct trials to identify new varieties of fruits and vegetables suitable for processing and for which there is significant international demand
Short term
• Expand the value chain and develop the regional market for the supply of raw materials or semi-processed raw materials
• Support the development of Special Economic Zones ( SEZs ) in various African countries
• Conduct a comprehensive assessment of local regulations• Assess potential implications on ROO
Medium term
• Expand output and export capacity through the setting up of agricultural economic zones
• Establish special economic regulations within the identified zones, including measures conducive to FDI
• Create regulations towards the use of unused land to implement the zones
• Make logistics for export available at SEZs through port facilitation, and Customs inspection and documentation at the zones
Long term
Value distribution : Economic and social development opportunities
Agro-processing impacts positively on farm incomes, employment and foreign exchange earnings. The sector notably contributes to improving human nutrition, generating employment and mainstreaming women in the agricultural sector.1
47THE WAY FORWARD
Figure 15 : Mauritius agro-processing future value chain
Photo: Miwok (CC0 1.0)
49THE IMPLEMENTATION MANAGEMENT FRAMEWORK
THE IMPLEMENTATION MANAGEMENT FRAMEWORK
This comprehensive Agro-Processing Sector Strategy, part of the NES Mauritius, endeavours to generate the conditions for a favourable expansion of the industry so as to contribute to overall socioeconomic development. Nevertheless, a strategy in and of itself is not enough to ensure the industry’s sustainable development. Such de-velopment will require the elaboration and coordination of various activities. While the execution of these activities will allow for the Strategy’s targets to be achieved, suc-cess will depend on the ability of stakeholders to plan and coordinate actions in a tactical manner.
Indeed, the Agro-Processing Sector Strategy is not the strategy of any specific institution ; rather it is the strat-egy of Mauritius, and to ensure its success it is neces-sary to foster an adequate environment and create an appropriate framework for its implementation. The follow-ing section presents some of the key success conditions considered necessary for the Strategy to be effectively implemented and achieve self-sustainability and long-lasting benefits for the country.
Establish and operationalize a public and private coordinating platform and its subsidiary organ
A key success criterion for the Agro-Processing Sector Strategy is stakeholders’ ability to coordinate activities, monitor progress and mobilize resources for the imple-mentation of the Strategy. It is recommended that the country establishes a single authority, to act as a one-stop shop to promote and support the agro-industry under one roof for public–private deliberations, that acts in an advi-sory capacity to the NES Secretariat, the Government and the private sector over issues related to or affecting the fruit and vegetable processing sector and its Strategy. The entity could take the form of an inter-branch organization under the aegis of the ministries in charge and function-ing on the basis of a public–private partnership model.
The inter-branch organization will require high-level in-volvement of the TSN members ( public and private ), as their role is crucial and will impact the effectiveness with which the Strategy is implemented. Likewise, the ability of the private sector to provide inputs to the Strategy imple-mentation process will significantly influence the success of the Strategy. A nominated secretariat that coordinates,
monitors and mobilizes resources for implementing the Strategy will also be required.
The main functions of the authority should be the following :
i. Act as a consultative group pertaining to the agro-processing sector, enabling the private sector and Government representatives to identify priority issues ;
ii. Coordinate and monitor the implementation of the Strategy by the Government, private sector, institu-tions or international organizations to ensure Strategy implementation is on track ;
iii. Identify and recommend allocation of resources nec-essary for the implementation of the Strategy ;
iv. Elaborate and recommend revisions and enhance-ments to the Strategy so that it continues to best re-spond to the needs and long-term interests of the sector ;
v. Propose key policy changes to be undertaken, based on Strategy priorities, and promote these policy changes among national decision makers ;
vi. Guide the secretariat in its monitoring, coordination, resource mobilization, and policy advocacy and com-munication functions to enable effective implementa-tion of the Strategy ;
In fine, the objective will be to agree on a common agenda and a long-term strategy to support the sector and pave the way for a comprehensive agricultural policy.
As discussed above, the inter-branch organization should be supported by a secretariat to complete the daily op-erational work related to implementation management of the Strategy. The core responsibilities of the secretariat should be to :
A. Support and organize regular meetings of the public and private stakeholders involved.
B. Monitor the progress and impact of Strategy implementation.
C. Coordinate Strategy implementation partners.D. Mobilize resources to implement the Strategy.
50 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021
Specific tasks falling under these broad areas of activi-ties include :
� Formulate project proposals, including budgets, for implementation of activities of the Strategy ;
� Develop annual and biannual workplans for approval by the organization ;
� Collect information from project implementation and prepare regular monitoring reports to be submitted to the organization ;
� Advocate in favour of the Strategy to public and private partners ;
� Execute any other tasks required by the inter-branch organization.
Private sector support and participation
The private sector should benefit from Strategy imple-mentation through improved productive capacities, re-duced costs of doing business, facilitated administrative procedures, enhanced access to finance, etc. However, the private sector clearly expressed during the Strategy design process its willingness to contribute, directly or in partnership with public institutions, to the implemen-tation of the Strategy. Their implementation efforts can range from advocacy to providing business intelligence to institutions, contributing to development projects, etc. In brief, the private sector’s practical knowledge of busi-ness operations is essential to ensuring that the activities of the Strategy are effectively implemented and targeted.
Sensitization of implementing institutions to build ownership
The key implementing institutions detailed in the PoA need to be informed of the content of the Strategy and the implications for their 2017–2021 programming. This sensitization is essential to building further ownership and it provides institutions with the opportunity to review the PoA in order to confirm the activities they can implement immediately, and in both the medium and long term. Such a programming approach will permit better resource allo-cation within the responsible agencies. This allocation can be formalized by integrating the activity of the Strategy into the programme planning of the institution. While the financial dimension is often required, the human resource element is no less important.
Financial resource mobilization for implemen-tation
While resource mobilization is only part of the solution, it plays a crucial and indispensable role in supporting Strategy implementation. An integrated resource mobili-zation plan should be elaborated as soon as the NES is adopted. Resource mobilization involves planning the se-quencing of communications with donors, project design,
project proposals / applications, and resources collection and management. This should facilitate, leverage and strengthen the impact of diverse sources of finance to support sustainable and inclusive implementation, in-cluding national resources, development aid and private investment.
� National resources through direct budget and support programme : The Government will need to validate defined minimum budget support towards the implementation of the different Strategy components of the NES, including the agro-processing sector. This support for the Strategy’s activities will demonstrate the Government’s commitment to the initiatives.
� Alignment of donors’ support and interventions with the Strategy : Little attention and support have been directed towards the fruit and vegetable processing industry from the international donor community. The inter-branch organization, together with the authorities, will have to capitalize on the significant momentum gained as part of the Strategy design process and leverage it for smooth and efficient implementation. International development agencies can use the Strategy as the logical framework for their programmes as they will surely benefit from its favourable conditions for operation ( i.e. political endorsement, private sector buy-in and improved collaboration with national institu-tions ). The PoA of the Strategy should serve the inter-branch organization as well as national institutions to improve communication and facilitate the negotiation, planning, coordination and evaluation of commitments made in the context of development aid, in particular through the development of programmes and project proposals aligned with the priorities of the Strategy.
� National and foreign investment : The Strategy design stakeholders’ group is composed of representatives of national institutions, the TSN and the private sector. If this group becomes the inter-branch organization, the Strategy should benefit from a solid channel of com-munication capable of conveying reliable information to companies about the export-related opportunities in the industry, and in turn of communicating to the Government the conditions that investors have identi-fied as necessary to operate successfully. Investment flow in Mauritius could serve as a valuable driver of certain specific areas identified in the Strategy and re-quiring support. Even so, it must be targeted at specific prospects in order to benefit the industry’s develop-ment.
MAURITIUS
RODRIGUESMauritius
Mad
agas
carAFRICA
IndianOcean
IndianOcean
MAURITIUS NATIONAL EXPORT STRATEGY AGRO-PROCESSING SECTOR
PLAN OF ACTION
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l Re
sear
ch C
entre
fo
r Int
erna
tiona
l De
velo
pmen
t ( C
IRAD
)?
1.1.
3. E
xplo
re th
e op
portu
nity
to s
treng
then
regi
onal
inte
grat
ion
and
linka
ges
for t
he
supp
ly o
f raw
mat
eria
ls th
roug
h fe
asib
ility
stu
dies
and
cos
t / b
enef
it an
alys
is, i
nclu
ding
: »Co
mpr
ehen
sive
ass
essm
ent o
f loc
al re
gula
tions
. »As
sess
pot
entia
l im
plic
atio
ns o
n RO
O. »As
sess
requ
irem
ents
for c
ertif
icat
ion
of fu
mig
atio
n an
d qu
aran
tine
requ
irem
ents
for
impo
rted
prod
ucts
with
the
Mau
ritia
n he
alth
aut
horit
ies
and
expl
ore
the
poss
ibili
ty to
fu
mig
ate
in M
aurit
ius
if th
e co
untry
of o
rigin
doe
s no
t gua
rant
ee s
uch
serv
ices
.Th
e de
velo
pmen
t of f
ruit
and
vege
tabl
e cr
ops
in re
gion
al c
ount
ries
such
as
Mad
agas
car,
Ghan
a, Z
ambi
a an
d Ea
st A
frica
n co
untri
es c
ould
be
envi
sage
d, to
ben
efit
from
ad
vant
ageo
us c
limat
ic c
ondi
tions
and
the
avai
labi
lity
of a
low-
cost
labo
ur fo
rce
and
land
. In
parti
cula
r, th
e op
portu
nity
to b
enef
it fro
m th
e SE
Zs th
at a
re c
urre
ntly
bei
ng
deve
lope
d by
Mau
ritiu
s in
Mad
agas
car w
ill b
e ex
plor
ed.
2Ag
ro-
proc
esso
rsCo
mpr
ehen
sive
fe
asib
ility
stu
dy
com
plet
ed b
y th
e en
d of
201
7
MAI
FS /
MoF
ARIIT
BOI (
Afric
a Ce
ntre
of
Exce
llenc
e ),
MCC
I,M
oFED
Mau
ritiu
s Af
rica
Fund
1.2.
Enh
ance
fa
rmin
g te
chni
ques
an
d im
prov
e ph
ysic
al
infra
stru
ctur
e.
1.2.
1. B
uild
ing
on c
urre
nt in
itiat
ives
bei
ng im
plem
ente
d by
FAR
EI, d
evel
op p
ilot f
arm
in
itiat
ives
– a
s a
dem
onst
rato
r ini
tiativ
e –
for t
he p
rodu
ctio
n of
pre
viou
sly
iden
tifie
d fru
it an
d ve
geta
ble
varie
ties
in th
e se
lect
ed a
groe
colo
gica
l are
as.
Spec
ifics
on
assi
stan
ce :
»Ac
cess
to q
ualit
y in
puts
incl
udin
g pe
stic
ides
and
ferti
lizer
s ( in
clud
ing
train
ing
on s
afe
appl
icat
ion )
; »Bu
ild c
apac
ities
and
kno
wled
ge o
n pr
oduc
tion,
incl
udin
g so
il an
alys
is a
nd w
ater
m
anag
emen
t, an
d pr
otec
tion
from
dis
ease
s ; »Tr
aini
ng o
n fa
rmin
g, h
arve
stin
g an
d po
stha
rves
t tec
hniq
ues
( cle
anin
g, s
ortin
g,
grad
ing,
sto
rage
, etc
. ) ;
»Sh
owca
se th
e di
ffere
nt fr
uit a
nd v
eget
able
var
ietie
s an
d ex
istin
g pr
oduc
tion
tech
nolo
gies
thro
ugh
pilo
t far
ms ;
»In
crea
se th
e pa
rtici
patio
n of
farm
ers’
org
aniz
atio
ns in
awa
rene
ss-r
aisi
ng c
ampa
igns
on
cro
p di
vers
ifica
tion
and
sust
aina
bilit
y ; »As
sist
ance
with
iden
tifyi
ng m
arke
ts a
nd b
uyer
s fo
r the
har
vest
.
1Pl
ante
rs »Id
entif
icat
ion
of
the
farm
to b
e co
mpl
eted
by
early
20
17 »Pi
lot f
arm
s to
be
read
y by
the
end
of
2017
FARE
IM
AIFS
Gove
rnm
ent /
do
nors
( Uni
ted
Natio
ns
Deve
lopm
ent
Prog
ram
me?
EU
? )
* A
ctiv
ity e
nvis
aged
in th
e Po
A d
evel
oped
und
er th
e M
aurit
ius
Min
istry
of A
gro
Indu
stry
and
Fis
herie
s B
luep
rint f
or a
‘Sus
tain
able
Div
ersi
fied
Agr
i Foo
d S
trate
gy
for M
aurit
ius
2008
–201
5’. P
roje
ct v
alue
: MU
R 9
00,0
00 (a
nnua
l bud
geta
ry a
lloca
tion:
MU
R 3
00,0
00).
53PLAN OF ACTIONSt
rate
gic
obje
ctiv
e 1 :
Impr
ove
the
prod
uctio
n an
d pr
oduc
tivity
of r
aw m
ater
ials
sui
tabl
e fo
r pro
cess
ing
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
1.2.
Enh
ance
fa
rmin
g te
chni
ques
an
d im
prov
e ph
ysic
al
infra
stru
ctur
e.
1.2.
2. E
xpan
d th
e ex
istin
g sy
stem
for t
he c
olle
ctio
n of
oni
ons,
gar
lic a
nd p
otat
oes
impl
emen
ted
by A
MB
to o
ther
var
ietie
s of
frui
ts a
nd v
eget
able
s an
d es
tabl
ish
colle
ctio
n po
ints
and
cer
tifie
d st
orag
e ce
ntre
s wi
th th
e re
quire
d fa
cilit
ies
( gra
ding
, pac
kagi
ng,
etc.
). »Ex
pand
and
upg
rade
exi
stin
g fa
cilit
ies,
incl
udin
g th
e de
velo
pmen
t of c
old
stor
age
faci
litie
s. »Es
tabl
ish
new
stor
age
faci
litie
s wh
ere
a ne
ed is
iden
tifie
d. »Tr
ain
prod
ucer
s an
d co
oper
ativ
es o
n st
orag
e fa
cilit
ies.
»De
velo
p, th
roug
h M
SB, s
tand
ards
for t
he g
radi
ng o
f cro
ps, a
s al
read
y de
velo
ped
for
som
e cr
ops
such
as
pota
toes
.Th
e ai
m is
to :
»Im
prov
e po
stha
rves
t man
agem
ent a
nd re
duce
pos
thar
vest
loss
es ;
»En
sure
the
colle
ctio
n of
frui
t and
veg
etab
le p
rodu
ctio
n ; »En
sure
pro
per s
tora
ge o
f the
com
mod
ities
; »Gu
aran
tee
com
mod
ity p
rices
for p
rodu
cers
.
1Pl
ante
rsAg
ro-
proc
esso
rs
Natio
nal c
olle
ctio
n sy
stem
exp
ande
d to
al
l stra
tegi
c cr
ops
prev
ious
ly id
entif
ied
by th
e en
d of
201
7
FARE
IM
oBEC
,M
AIFS
, AM
B,M
SB,
natio
nal
whol
esal
e m
arke
t
Gove
rnm
ent
1.2.
3. P
rovi
de s
peci
al lo
ng-t
erm
cre
dit,
a hi
re-p
urch
ase
syst
em a
nd te
chni
cal
assi
stan
ce to
impr
ove
farm
mec
hani
zatio
n an
d th
e ad
optio
n of
mod
ern
tech
nolo
gy.
Sim
plify
the
proc
edur
es a
nd e
ligib
ility
crit
eria
to a
cces
s sp
ecia
l sch
emes
ava
ilabl
e to
pl
ante
rs a
nd e
nsur
e th
e di
ssem
inat
ion
of in
form
atio
n.Ex
istin
g or
rece
nt s
chem
es a
nd s
uppo
rt pr
ogra
mm
es in
clud
e : »Th
e VA
T Re
fund
Sch
eme
for t
he a
gro-
indu
stria
l and
fish
erie
s se
ctor
s, w
here
in V
AT
paid
on
equi
pmen
t is
refu
nded
to re
gist
ered
pro
duce
rs.
»Un
der t
he R
estru
ctur
ing
Wor
king
Gro
up, l
easi
ng fo
r Equ
ipm
ent M
oder
niza
tion
Sche
me :
a li
ne o
f cre
dit t
o le
asin
g co
mpa
nies
to p
rovi
de a
fford
able
fina
ncin
g to
SM
Es
to p
urch
ase
equi
pmen
t. Th
e Sc
hem
e wa
s cl
osed
in 2
015
but e
fforts
cou
ld b
e m
ade
to
brin
g it
back
ont
o th
e ag
enda
, als
o no
t lim
iting
it o
nly
to S
MEs
.
1 »Pl
ante
rs »Ag
ro-
proc
esso
rs
»M
echa
nism
s to
im
prov
e fa
rm
mec
hani
zatio
n en
forc
ed b
y m
id-
2017
, inc
ludi
ng
the
Leas
ing
for E
quip
men
t M
oder
niza
tion
Sche
me
»Te
n pe
r cen
t in
crea
se in
th
e nu
mbe
r of
bene
ficia
ries
( fro
m
the
sect
or ) o
f the
VA
T Re
fund
Sch
eme
repo
rted
ever
y ye
ar
MoF
EDSt
ate
Inve
stm
ent
Corp
orat
ion,
M
aurit
ius
Busi
ness
Gr
owth
Sc
hem
e,
bank
s, le
asin
g co
mpa
nies
Gove
rnm
ent
1.2.
4. E
xten
d th
e gr
ant s
chem
e im
plem
ente
d by
the
Gove
rnm
ent o
f Mau
ritiu
s to
pu
rcha
se n
ets
to p
rote
ct fr
uit f
rom
bat
s an
d bi
rds
to ta
ckle
the
prob
lem
of i
ncre
asin
g lo
sses
incu
rred
by fr
uit g
rowe
rs.*
1Pl
ante
rsGr
ant s
chem
e ex
tend
ed o
n an
ann
ual
basi
s un
til 2
020
MAI
FS
Gove
rnm
ent
( ong
oing
)
1.3.
Bui
ld
farm
ers’
ca
paci
ties
to p
rodu
ce
qual
ity ra
w m
ater
ials
in
line
with
in
tern
atio
nal
best
pr
actic
es.
1.3.
1. C
ondu
ct a
trai
ning
nee
ds a
sses
smen
t to
obta
in a
cle
ar p
ictu
re o
f the
qua
lific
atio
ns
and
skill
s ne
eded
for t
he d
evel
opm
ent o
f the
agr
o-pr
oces
sing
sec
tor i
n M
aurit
ius.
»Ba
sed
on th
e re
sults
of t
he a
sses
smen
t : »Im
prov
e th
e qu
ality
of e
xist
ing
train
ing
prog
ram
mes
»De
velo
p ne
w cu
rricu
la fo
r agr
o en
gine
ers
and
food
tech
nolo
gist
s.
1Ag
ro-
proc
esso
rsSt
udy
com
plet
ed b
y th
e en
d of
201
7M
AIFS
M
inis
try o
f Ed
ucat
ion
and
Hum
an
Reso
urce
s,
Terti
ary
Educ
atio
n an
d Sc
ient
ific
Rese
arch
( M
oE ) /
HR
DC, F
AREI
, Un
iver
sity
of
Mau
ritiu
s
Gove
rnm
ent
* A
ctiv
ity e
nvis
aged
in th
e Po
A d
evel
oped
und
er th
e M
aurit
ius
Min
istry
of A
gro
Indu
stry
and
Fis
herie
s B
luep
rint f
or a
‘Sus
tain
able
Div
ersi
fied
Agr
i Foo
d S
trate
gy
for M
aurit
ius
2008
–201
5’. P
roje
ct v
alue
: MU
R 9
00,0
00 (a
nnua
l bud
geta
ry a
lloca
tion:
MU
R 3
00,0
00).
54 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021St
rate
gic
obje
ctiv
e 1 :
Impr
ove
the
prod
uctio
n an
d pr
oduc
tivity
of r
aw m
ater
ials
sui
tabl
e fo
r pro
cess
ing
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
1.3.
Bui
ld
farm
ers’
ca
paci
ties
to p
rodu
ce
qual
ity ra
w m
ater
ials
in
line
with
in
tern
atio
nal
best
pr
actic
es.
1.3.
2. B
uild
ing
on th
e cu
rrent
MAU
RIG.
A.P.
initi
ativ
e be
ing
deve
lope
d jo
intly
by
MSB
an
d FA
REI (
but n
ot im
plem
ente
d ye
t ), fo
ster
the
adop
tion
of G
AP in
the
sect
or b
y pr
epar
ing
train
ing
man
uals
and
del
iver
ing
train
ings
to fa
rmer
s an
d ex
tens
ion
work
ers
aim
ing
to p
rodu
ce q
ualit
y pr
oduc
ts. T
rain
ing
cour
ses
will
focu
s on
, am
ong
othe
r m
atte
rs :
»Cr
op ro
tatio
n to
impr
ove
soil
ferti
lity ;
»Pl
antin
g te
chni
ques
; »Ha
rves
ting
and
post
harv
est h
andl
ing
tech
niqu
es, i
nclu
ding
sto
rage
; »Ef
ficie
nt p
lant
layo
uts
and
prod
uctio
n sy
stem
s ; »Cr
op p
rote
ctio
n ; »Ap
prop
riate
use
of a
groc
hem
ical
s ( s
ee b
elow
).
2 »Pl
ante
rs »Ag
ro-
proc
esso
rs
Four
trai
ning
s pe
r yea
r or
gani
zed,
sta
rting
in
201
7
MSB
FARE
IGo
vern
men
t ( o
ngoi
ng )
1.3.
3. U
nder
take
, thr
ough
the
Natio
nal E
mpo
werm
ent F
ound
atio
n / Y
outh
Em
ploy
men
t Pr
ogra
mm
e, n
atio
nal c
omm
unic
atio
n ca
mpa
igns
and
car
eer g
uida
nce
on th
e po
tent
ial o
f th
e ag
ro-in
dust
rial s
ecto
r to
trigg
er in
tere
st fr
om y
outh
.
1En
tire
valu
e ch
ain
Natio
nal
com
mun
icat
ion
cam
paig
n el
abor
ated
an
d la
unch
ed b
y m
id-
2017
MAI
FS
MoE
; Min
istry
of
Lab
our,
Indu
stria
l Re
latio
ns a
nd
Empl
oym
ent ;
EM ; M
CCI ;
univ
ersi
ties ;
HRDC
Gove
rnm
ent
1.4.
St
ream
line
the
use
of
agro
chem
i-ca
ls.
1.4.
1. R
evie
w th
e cu
rrent
sys
tem
, inc
ludi
ng th
e Da
nger
ous
Chem
ical
s Co
ntro
l Act
* 20
04
– an
d its
enf
orce
men
t – to
con
trol t
he le
vels
of c
hem
ical
resi
dues
in c
rop
prod
uctio
n an
d fo
rmul
ate
reco
mm
enda
tions
to :
»Ad
opt a
mor
e sy
stem
atic
app
roac
h fo
r con
trol t
ests
. »Ad
opt a
new
stra
tegy
for t
arge
ted
cont
rols
of c
hem
ical
resi
dues
in fr
uits
and
ve
geta
bles
. »En
sure
trac
eabi
lity
with
rega
rds
to p
estic
ide
cont
rol.
»Fo
llow
up th
e re
cent
dev
elop
men
ts fo
r the
ena
ctm
ent o
f spe
cific
regu
latio
ns o
n pe
stic
ides
and
ens
ure
that
: »Ef
fect
ive
enfo
rcem
ent m
echa
nism
s ha
ve b
een
incl
uded
. »A
writt
en p
roto
col f
or th
e us
e of
che
mic
als
on fr
uit a
nd v
eget
able
cro
ps in
Mau
ritiu
s ha
s be
en e
labo
rate
d.
1Pl
ante
rsSy
stem
revi
ewed
and
re
com
men
datio
ns
form
ulat
ed b
y ea
rly
2017
MAI
FS
Inde
pend
ent
cons
ulta
nts,
FARE
I
Gove
rnm
ent
1.4.
2. S
treng
then
exi
stin
g se
nsiti
zatio
n ca
mpa
igns
and
trai
ning
impl
emen
ted
by F
AREI
on
the
safe
use
of a
groc
hem
ical
s, in
clud
ing
ferti
lizer
s an
d pe
stic
ides
, and
the
adeq
uate
tre
atm
ents
to b
e us
ed fo
r pes
t and
dis
ease
pro
blem
s in
fiel
d cr
ops.
Rais
e aw
aren
ess
and
prom
ote
orga
nic
farm
ing
and
the
use
of b
iofe
rtiliz
ers
and
pest
icid
es.
1Pl
ante
rsAl
l pro
duce
rs m
et a
nd
sens
itize
d by
the
end
of 2
017
MAI
FS
FARE
IGo
vern
men
t
1.4.
3. U
pgra
de la
bora
torie
s to
dea
l with
the
cont
rol o
f che
mic
al re
sidu
es, b
y ad
voca
ting
for b
udge
t allo
catio
n an
d ex
pand
ing
tech
nica
l coo
pera
tion
with
regi
onal
and
in
tern
atio
nal o
rgan
izat
ions
. »Pr
ovid
e th
e la
bora
torie
s wi
th a
dvan
ced
equi
pmen
t to
perfo
rm c
ompl
ex te
sts.
»Tr
ain
staf
f.
1 »Pl
ante
rs »Ag
ro-
proc
esso
rs
Thre
e la
bora
torie
s up
grad
ed b
y 20
18
MAI
FS
FARE
IGo
vern
men
t /
dono
rs ( E
U? )
1.4.
4. C
reat
e an
enf
orce
men
t bod
y to
regu
late
the
cond
uct o
f tes
ts a
nd a
naly
sis
on
agro
chem
ical
s.1
»Pl
ante
rs »Ag
ro-
proc
esso
rs
Enfo
rcem
ent b
ody
oper
atio
nal b
y m
id-
2017
MAI
FS
FARE
IGo
vern
men
t
* T
he D
ange
rous
Che
mic
als
Con
trol A
ct 2
004
is a
n A
ct ‘t
o pr
ovid
e fo
r the
pre
vent
ion
of d
amag
e to
hea
lth a
nd to
the
envi
ronm
ent c
ause
d by
dan
gero
us
chem
ical
s an
d fo
r bet
ter p
rote
ctio
n of
the
wor
kers
, mem
bers
of t
he p
ublic
and
the
envi
ronm
ent a
gain
st d
ange
rous
che
mic
als’
.
55PLAN OF ACTIONSt
rate
gic
obje
ctiv
e 2 :
Impr
ove
the
sect
or’s
tech
nica
l cap
acity
and
pro
vide
the
indu
stry
with
an
enab
ling
regu
lato
ry e
nviro
nmen
t
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
2.1.
Dev
elop
th
e ca
paci
ty
of th
e ag
ro-
proc
essi
ng
sect
or.
2.1.
1. F
oste
r col
labo
ratio
n be
twee
n pr
ivat
e co
mpa
nies
and
uni
vers
ities
and
tra
inin
g in
stitu
tions
to d
evel
op tr
aini
ng c
ours
es to
impr
ove
know
ledg
e an
d ha
nds-
on s
kills
in fo
od p
roce
ssin
g, in
clud
ing :
»Ap
prop
riate
tech
nolo
gies
and
the
late
st te
chni
ques
; »Fo
od p
rese
rvat
ion
tech
niqu
es ;
»In
dust
rial a
nd s
emi-
indu
stria
l pro
cess
ing
equi
pmen
t, in
clud
ing
mai
nten
ance
an
d re
pair
of p
roce
ssin
g m
achi
nery
; »Fo
od p
acka
ging
.
1Ag
ro-p
roce
ssor
sOr
gani
zatio
n of
one
m
eetin
g pe
r sem
este
r, st
artin
g se
cond
sem
este
r 20
17
MoE
Univ
ersi
ties,
HR
DC, F
AREI
, M
AIFS
, priv
ate
sect
or
Gove
rnm
ent
( ong
oing
)
2.1.
2. L
aunc
h tra
inin
g pr
ogra
mm
es in
bus
ines
s sk
ills
on s
peci
fic to
pics
rele
vant
to
the
deve
lopm
ent o
f the
agr
o-pr
oces
sing
sec
tor,
incl
udin
g : »In
nova
tion
man
agem
ent
»Ca
sh p
repa
ratio
n »Bu
sine
ss m
anag
emen
t »M
arke
ting
stra
tegy
»Co
mm
unic
atio
n »Bu
sine
ss p
lan
prep
arat
ion
»Hu
man
reso
urce
s pl
anni
ng »Op
portu
nity
reco
gniti
on.
1Ag
ro-in
dust
ryTr
aini
ng p
rogr
amm
es
deve
lope
d by
mid
-201
7 an
d op
erat
iona
l for
the
seco
nd s
emes
ter 2
017
MoE
Indu
stria
l and
Vo
catio
nal
Trai
ning
Boa
rd,
Univ
ersi
ty o
f M
aurit
ius,
pr
ivat
e se
ctor
Priv
ate
com
pani
es /
Gove
rnm
ent /
do
nors
2.1.
3. S
et u
p an
agr
ibus
ines
s in
cuba
tion
cent
re –
to a
ct a
s a
tech
nolo
gy b
usin
ess
incu
bato
r for
pro
cess
ing
– to
offe
r ent
repr
eneu
rs th
e op
portu
nity
to v
entu
re in
ag
ro-p
roce
ssin
g :*
»Pr
ivat
ely
oper
ated
and
man
aged
faci
lity
so th
at th
ere
is a
n in
tere
st in
m
aint
aini
ng th
e eq
uipm
ent a
nd re
cove
ring
cost
s ; »Av
aila
bilit
y of
pro
cess
ing
equi
pmen
t as
a sh
ared
faci
lity
for p
rodu
cers
to u
se ;
»Su
ch fa
cilit
ies
coul
d al
so b
e us
ed fo
r tra
inin
g an
d ac
quai
ntin
g pr
oduc
ers
with
th
e la
test
tech
nolo
gies
and
equ
ipm
ent.
1Ag
ro-in
dust
ryAg
ribus
ines
s in
cuba
tion
cent
re s
et u
p by
the
end
of 2
017
MAI
FS
MIC
CP, p
rivat
e se
ctor
, EM
, BOI
, M
CCI
Gove
rnm
ent
/ priv
ate
fund
ing
2.2.
Fur
ther
de
velo
p re
sear
ch
infra
stru
ctur
es
in a
gro-
proc
essi
ng.
2.2.
1. E
labo
rate
, bas
ed o
n th
e ou
tcom
e of
a c
ompr
ehen
sive
gap
ana
lysi
s, a
st
rate
gy to
impr
ove
the
hum
an, t
echn
ical
and
fina
ncia
l cap
aciti
es o
f FAR
EI,
incl
udin
g : »Co
nduc
t cap
acity
-bui
ldin
g ac
tiviti
es to
impr
ove
the
econ
omic
inte
llige
nce
of
the
Inst
itute
; »Up
grad
e ex
istin
g eq
uipm
ent ;
»In
crea
se th
e nu
mbe
r of i
n-ho
use
spec
ialis
ts to
pro
vide
the
nece
ssar
y su
ppor
t to
the
deve
lopi
ng fo
od p
roce
ssin
g se
ctor
; »Im
prov
e qu
ality
and
ava
ilabi
lity
of e
xten
sion
ser
vice
s.
2FA
REI
Stra
tegy
ela
bora
ted
by th
e en
d of
201
7In
depe
nden
t co
nsul
tant
sFA
REI
MAI
FSGo
vern
men
t /
dono
rs
2.2.
2. D
evel
op a
nat
iona
l pro
gram
me
for a
gric
ultu
ral e
xten
sion
to im
prov
e ac
cess
to e
xten
sion
ser
vice
s by
farm
ers
and
furth
er s
treng
then
agr
icul
tura
l R&
D. »De
velo
p in
nova
tive
agric
ultu
ral e
xten
sion
cou
rses
, als
o in
volv
ing
priv
ate
com
pani
es ;
»Ha
ve re
sear
cher
s wo
rkin
g m
ore
clos
ely
with
the
farm
ers
in th
e fie
ld ;
»Co
nduc
t res
earc
h on
the
agric
ultu
ral s
uppl
y ch
ain.
1 »Pl
ante
rs »Ag
ro-
proc
esso
rs
Natio
nal p
rogr
amm
e fo
r ag
ricul
tura
l ext
ensi
on
enfo
rced
by
mid
-201
7
MAI
FSFA
REI
Gove
rnm
ent
2.2.
3. U
sing
the
onlin
e pl
atfo
rm e
nvis
aged
und
er 3
.3.1
., es
tabl
ish
mec
hani
sms
for s
yste
mat
ic d
isse
min
atio
n of
info
rmat
ion
betw
een
rese
arch
inst
itute
s an
d th
e pr
oduc
ers
/ pro
cess
ors
in th
e fie
ld to
link
new
pro
duct
s or
pro
cess
es a
risin
g fro
m
rese
arch
act
iviti
es ( F
AREI
) and
thei
r mar
ketin
g an
d co
mm
erci
aliz
atio
n.
1En
tire
valu
e ch
ain
Onlin
e pl
atfo
rm d
evel
oped
by
the
end
of 2
017
FARE
IGo
vern
men
t /
dono
rs
* A
ctiv
ity e
nvis
aged
in th
e Po
A d
evel
oped
und
er th
e M
aurit
ius
Min
istry
of A
gro
Indu
stry
and
Fis
herie
s B
luep
rint f
or a
‘Sus
tain
able
D
iver
sifie
d A
gri F
ood
Stra
tegy
for M
aurit
ius
2008
–201
5’. P
roje
ct v
alue
: MU
R 9
,000
,000
(ann
ual b
udge
tary
allo
catio
n: M
UR
3,0
00,0
00).
56 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021St
rate
gic
obje
ctiv
e 2 :
Impr
ove
the
sect
or’s
tech
nica
l cap
acity
and
pro
vide
the
indu
stry
with
an
enab
ling
regu
lato
ry e
nviro
nmen
t
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
2.3.
Upg
rade
th
e Na
tiona
l Qu
ality
In
frast
ruct
ure
and
enab
le
com
plia
nce
with
in
tern
atio
nal
stan
dard
s.
2.3.
1. D
raft
reco
mm
enda
tions
to M
ICCP
( Ind
ustry
Div
isio
n ) to
con
side
r a re
view
of
the
stat
us o
f MAU
RITA
S wi
th a
vie
w to
ach
ievi
ng fu
ll in
depe
nden
ce v
is-à
-vis
pu
blic
aut
horit
ies.
This
inde
pend
ence
will
be
a cr
itica
l ste
p fo
r MAU
RITA
S to
bec
ome
a si
gnat
ory
of
the
ILAC
MRA
with
a v
iew
to a
chie
ving
inte
rnat
iona
l rec
ogni
tion.
Note
: MAU
RITA
S is
cur
rent
ly a
n as
soci
ate
mem
ber o
f ILA
C. O
nce
full
mem
bers
hip
stat
us is
obt
aine
d, M
AURI
TAS
will
be a
ble
to a
sses
s an
d ac
cred
it co
nfor
mity
ass
essm
ent b
odie
s ac
cord
ing
to th
e re
leva
nt in
tern
atio
nal s
tand
ards
.
1 »Ag
ro-
proc
esso
rs »M
AURI
TAS
MAU
RITA
S is
a s
igna
tory
of
the
ILAC
MRA
by
the
end
of 2
017
Exte
rnal
te
chni
cal
assi
stan
ce
MAU
RITA
SDo
nors
/ Go
vern
men
t
2.3.
2. C
ondu
ct a
gap
ana
lysi
s to
det
erm
ine
the
norm
s an
d st
anda
rds
requ
irem
ents
of t
he a
gro-
proc
essi
ng s
ecto
r and
the
serv
ices
cur
rent
ly p
rovi
ded
by te
stin
g la
bora
torie
s in
Mau
ritiu
s.Pe
rform
a c
ost-
bene
fit a
naly
sis
to a
sses
s th
e re
leva
nce
and
feas
ibili
ty o
f co
nduc
ting
such
test
s lo
cally
, tha
t is,
test
s th
at c
an b
e co
nduc
ted
in a
tim
ely
and
cost
-effi
cien
t man
ner u
sing
the
serv
ices
pro
vide
d by
Mau
ritia
n la
bora
torie
s.
1 »Ag
ro-
proc
esso
rs »Na
tiona
l Qua
lity
Infra
stru
ctur
e
Gap
anal
ysis
com
plet
ed b
y ea
rly 2
017
Inde
pend
ent
cons
ulta
nts
MSB
, priv
ate
labo
rato
ries,
M
AIFS
( Foo
d Te
ch L
ab ),
Min
istry
of
Heal
th a
nd
Qual
ity o
f Life
Dono
rs /
Gove
rnm
ent
2.3.
3. B
ased
on
the
resu
lts o
f the
gap
ana
lysi
s, w
ork
towa
rds
upgr
adin
g ex
istin
g te
stin
g la
bora
torie
s to
allo
w th
em to
issu
e th
e in
tern
atio
nally
reco
gnize
d fo
od
safe
ty c
ertif
icat
es n
eces
sary
for v
alue
add
ed e
xpor
ts o
f foo
dstu
ffs.
»En
sure
that
test
ing
labo
rato
ries
are
accr
edite
d by
upg
radi
ng la
bora
torie
s if
nece
ssar
y. »De
velo
p in
tern
atio
nally
reco
gnize
d pr
otoc
ols,
nor
ms
and
stan
dard
s fo
r m
inim
ally
pro
cess
ed a
nd p
rese
rved
pro
duct
s an
d fru
it ju
ices
.6 »Bu
ild s
taff
capa
city
.
1Ag
ro-in
dust
ryPr
otoc
ols,
nor
ms
and
stan
dard
s de
velo
ped
and
enfo
rced
by
mid
-201
7
MAI
FS
MIC
CP, p
rivat
e la
bora
torie
s,M
inis
try o
f He
alth
and
Qu
ality
of L
ife
Gove
rnm
ent
( ong
oing
)
2.3.
4. H
arm
onize
and
stre
amlin
e th
e cu
rrent
regu
lato
ry fr
amew
ork
for t
he a
gro-
proc
essi
ng s
ecto
r, in
par
ticul
ar re
gard
ing
test
ing
and
certi
ficat
ion :
»Cl
early
spe
cify
the
certi
ficat
ions
nee
ded
and
from
whi
ch e
ligib
le la
bora
torie
s th
ey c
an b
e ob
tain
ed ( a
lso
givi
ng o
pera
tors
a c
hoic
e am
ong
seve
ral a
ccre
dite
d la
bora
torie
s, i.
e. G
over
nmen
t Ana
lyst
Div
isio
n / M
SB /
othe
r Gov
ernm
ent
labo
rato
ries
or a
ny re
cogn
ized
labo
rato
ries )
. »St
ream
line
adm
inis
trativ
e pr
oces
ses
rela
ted
to th
e va
lidat
ion
of th
e te
sts
and
cont
rols
per
form
ed.
Clea
rly d
efin
e th
e ro
les
and
resp
onsi
bilit
ies
betw
een
the
diffe
rent
min
istri
es
invo
lved
.
1 »Ag
ro-
proc
esso
rs »Na
tiona
l Qua
lity
Infra
stru
ctur
e
Sim
plifi
ed s
yste
m in
pla
ce
by 2
017
MAI
FS
MIC
CP, M
SB,
MAU
RITA
SGo
vern
men
t
2.3.
5. P
rovi
de te
chni
cal a
ssis
tanc
e to
MSB
for t
he p
rogr
essi
ve im
plem
enta
tion
of th
e GL
OBAL
G.A.
P. C
ertif
icat
ion
Sche
me
for a
saf
er fa
rm s
uppl
y ch
ain,
nam
ely
thro
ugh
the
impl
emen
tatio
n of
MAU
RIG.
A.P.
cer
tific
atio
n : »Tr
ain
farm
ers
with
the
help
of d
evel
opm
ent p
artn
ers ;
»M
onito
r the
ado
ptio
n of
the
prac
tices
; »Ev
alua
tion
and
certi
ficat
ion
of G
AP b
y ac
cred
ited
orga
niza
tions
.In
fine
, the
obj
ectiv
e of
the
sche
me
is to
pro
vide
GLO
BALG
.A.P
. cer
tific
atio
n to
fa
rmer
s fo
r the
cul
tivat
ion
of fr
uits
and
veg
etab
les,
a p
assp
ort f
or e
xpor
t to
EU
coun
tries
.
2Ag
ro-p
roce
ssor
sM
AURI
G.A.
P. c
ertif
icat
ion
impl
emen
ted
by th
e en
d of
201
7
Inde
pend
ent
cons
ulta
nts
MSB
, FAR
EI,
MAI
FS
Dono
rs
( Fre
nch
Deve
lopm
ent
Agen
cy? )
57PLAN OF ACTIONSt
rate
gic
obje
ctiv
e 2 :
Impr
ove
the
sect
or’s
tech
nica
l cap
acity
and
pro
vide
the
indu
stry
with
an
enab
ling
regu
lato
ry e
nviro
nmen
t
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
2.3.
Upg
rade
th
e Na
tiona
l Qu
ality
In
frast
ruct
ure
and
enab
le
com
plia
nce
with
in
tern
atio
nal
stan
dard
s.
2.3.
6. B
ased
on
past
exp
erie
nces
, dev
elop
and
stre
ngth
en s
chem
es a
vaila
ble
to
oper
ator
s wi
lling
to o
btai
n th
e HA
CCP
certi
ficat
ion.
»Th
e pr
oced
ures
and
elig
ibili
ty c
riter
ia s
hall
be w
ritte
n in
a w
ay th
at is
eas
ily
acce
ssib
le to
thos
e wi
shin
g to
app
ly.
Ensu
re g
uida
nce
on a
pplic
atio
n pr
oced
ures
and
mor
e co
mpr
ehen
sibl
e ap
plic
atio
n fo
rms.
2Ag
ro-p
roce
ssor
sSc
hem
es fo
r HAC
CP
certi
ficat
ion
in p
lace
by
mid
-201
7
MyB
izM
aurit
ius
Busi
ness
Gr
owth
Sc
hem
e,
( SM
EDA )
, M
AIFS
Gove
rnm
ent
2.3.
7. D
evel
op a
nat
iona
l stra
tegy
for t
he d
evel
opm
ent o
f the
pro
duct
ion
of
orga
nic
prod
ucts
in M
aurit
ius :
»De
velo
p a
lega
l fra
mew
ork,
incl
udin
g : »De
velo
p an
insp
ectio
n sy
stem
»De
velo
p a
trace
abili
ty s
yste
m »Se
t up
a ce
rtific
atio
n bo
dy o
r upg
rade
the
capa
city
of a
n ex
istin
g en
tity.
»Id
entif
y th
e in
frast
ruct
ures
requ
ired
and
the
pote
ntia
l site
s fo
r org
anic
farm
ing.
»Pr
omot
e an
d ra
ise
awar
enes
s am
ong
prod
ucer
s –
and
cons
umer
s –
abou
t the
va
rious
ben
efits
of o
rgan
ic fa
rmin
g.
1Ag
ro-in
dust
ryNa
tiona
l stra
tegy
for t
he
deve
lopm
ent o
f org
anic
fa
rmin
g de
velo
ped
by th
e en
d of
201
7
MAI
FSM
SB, M
inis
try
of H
ealth
and
Qu
ality
of L
ife,
MoB
EC, M
CA,
Mau
ritiu
s Co
oper
ativ
e Ag
ricul
tura
l Fe
dera
tion
Gove
rnm
ent
2.3.
8. S
uppo
rt fa
ir tra
de c
ertif
icat
ion
of c
oope
rativ
es a
nd p
roce
ssor
s by
trai
ning
th
ese
grou
ps in
goo
d go
vern
ance
, lab
our r
ight
s, e
tc. a
nd p
rovi
ding
tech
nica
l su
ppor
t to
adhe
re to
and
impl
emen
t fai
r tra
de s
tand
ards
( a s
imila
r sup
port
prog
ram
me
is in
pla
ce fo
r the
sug
ar in
dust
ry ).
1Ag
ro-p
roce
ssor
sSu
ppor
t pro
gram
me
for t
he
deve
lopm
ent o
f fai
r tra
de
stan
dard
s in
pla
ce b
y m
id-
2017
MoB
ECM
AIFS
MCA
,M
aurit
ius
Coop
erat
ive
Agric
ultu
ral
Fede
ratio
n
FairT
rade
Af
rica?
2.4.
Pro
mot
e in
vest
men
t in
the
agro
-pr
oces
sing
se
ctor
2.4.
1. A
dvoc
ate,
mak
ing
polic
y pr
opos
als
and
reco
mm
enda
tions
to s
uppo
rt fa
rmer
s wi
lling
to in
vest
in in
nova
tive
prod
ucts
and
man
ufac
turin
g pr
oces
ses
thro
ugh
the
prov
isio
n of
ince
ntiv
es s
uch
as ta
x cre
dits
for R
&D,
dut
y-fre
e im
ports
, etc
.Ta
rget
ed ta
x inc
entiv
es in
the
form
of a
n en
title
men
t pro
gram
me
coul
d be
es
tabl
ishe
d to
sup
port
prod
ucer
s of
fset
ting
som
e of
the
cost
s as
soci
ated
with
R&
D an
d to
hel
p m
ore
busi
ness
es c
ondu
ct R
&D
and
inno
vate
.
1Ag
ro-in
dust
ryIn
clus
ion
of a
tax c
redi
t for
R&
D in
the
Budg
et o
f the
Go
vern
men
t of M
aurit
ius
for t
he F
isca
l Yea
r 201
7
Mau
ritiu
s Bu
sine
ss
Grow
th
Sche
me
( MoB
EC )
MCA
Gove
rnm
ent
( ong
oing
)
2.4.
2. O
ffer f
inan
cial
sup
port
and
bank
ing
faci
litie
s at
attr
activ
e te
rms
and
cond
ition
s to
inno
vativ
e ag
ro-p
roce
ssor
s by
enc
oura
ging
com
mer
cial
ban
ks to
of
fer l
ow in
tere
st ra
te lo
ans.
The
finan
cial
sup
port
will
be a
ccom
pani
ed b
y ap
prop
riate
mar
ket r
esea
rch
/ in
sura
nce
sche
mes
to p
reve
nt b
ad d
ebts
.
1Ag
ro-p
roce
ssor
sFi
nanc
ial s
uppo
rt sc
hem
e op
erat
iona
l by
the
end
of
2017
MoF
EDCo
mm
erci
al
bank
s,
Deve
lopm
ent
Bank
of
Mau
ritiu
s,
impa
ct
inve
stor
s
Priv
ate
sect
or, S
ME
Partn
ersh
ip
Fund
2.4.
3. R
evie
w ex
istin
g po
licie
s to
sup
port
loca
l inv
esto
rs a
nd d
evel
op a
n in
cent
ive
pack
age
for i
nves
tors
. The
feas
ibili
ty o
f dev
elop
ing
the
follo
wing
sc
hem
es c
ould
be
expl
ored
: »Of
fer t
ax h
olid
ays
for i
nves
tors
in a
gro-
proc
essi
ng.
»Of
fer t
ax h
olid
ays
for i
mpo
rt of
cap
ital g
oods
and
oth
er in
puts
for p
roce
ssin
g. »Of
fer p
roce
dura
l inc
entiv
es a
nd s
et u
p a
one-
stop
sho
p to
redu
ce b
urea
ucra
cy,
in p
artic
ular
rega
rdin
g th
e nu
mbe
r of p
erm
its a
nd li
cenc
es re
quire
d fo
r exp
ort
( ong
oing
). »Pr
ovid
e in
frast
ruct
ural
ince
ntiv
es, e
.g. b
uild
ings
and
land
for l
ease
at a
fford
able
ra
tes.
1In
vest
ors
Ince
ntiv
e pa
ckag
e de
velo
ped
and
final
ized
by
mid
-201
7
MAI
FSBO
I, EM
, MCC
I, M
aurit
ius
Reve
nue
Auth
ority
, M
oFED
, priv
ate
sect
or
Gove
rnm
ent
58 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021St
rate
gic
obje
ctiv
e 2 :
Impr
ove
the
sect
or’s
tech
nica
l cap
acity
and
pro
vide
the
indu
stry
with
an
enab
ling
regu
lato
ry e
nviro
nmen
t
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
2.4.
Pro
mot
e in
vest
men
t in
the
agro
-pr
oces
sing
se
ctor
2.4.
4. C
ondu
ct a
feas
ibili
ty s
tudy
for t
he s
ettin
g up
of a
gric
ultu
ral e
cono
mic
zo
nes,
i.e.
SEZ
s sp
ecifi
c to
agr
o-in
dust
ry o
r int
egra
ted
fruit
and
vege
tabl
e pr
oces
sing
par
ks, f
or fr
uit a
nd v
eget
able
pro
cess
ing
for e
xpor
t pur
pose
s, a
lso
cons
ider
ing
the
setti
ng u
p of
SEZ
s in
oth
er A
frica
n co
untri
es ( s
ee 1
.1.3
. ).Th
e SE
Z wi
ll ad
opt a
pro
duct
-spe
cific
app
roac
h ba
sed
on th
e re
sults
of t
he
deta
iled
natio
nal a
gron
omic
ass
essm
ent (
see
1.1.
1. ) a
nd b
uild
ing
on p
ast
initi
ativ
es. L
inka
ges
with
the
clus
ter i
nitia
tive
coul
d be
env
isag
ed.
Spec
ial e
cono
mic
regu
latio
ns w
ithin
the
iden
tifie
d zo
nes,
incl
udin
g m
easu
res
that
are
con
duci
ve to
FDI
, cou
ld in
clud
e : »Sp
ecia
l fis
cal p
acka
ge »Ea
sier
acc
ess
to la
nd »Ac
cess
to a
mor
e fle
xibl
e la
bour
mar
ket
»Du
ty-f
ree
impo
rts o
f inp
uts
»Ac
cess
to b
asic
infra
stru
ctur
es »M
ake
logi
stic
s fo
r exp
ort a
vaila
ble
at S
EZs
thro
ugh
port
faci
litat
ion
and
Cust
oms
insp
ectio
n an
d do
cum
enta
tion
at th
e zo
nes.
2 »In
vest
ors
»Ag
ro-
proc
esso
rs
»Fe
asib
ility
ana
lysi
s fo
r se
tting
up
SEZs
focu
sing
on
frui
t and
veg
etab
le
proc
essi
ng c
ompl
eted
by
mid
-201
7 »Ex
port-
proc
essi
ng zo
ne
func
tiona
l by
early
201
8
MAI
FS
MIC
CP,
Mau
ritiu
s Re
venu
e Au
thor
ity,
MCC
I, FA
REI,
BOI,
MoF
ED
Gove
rnm
ent /
do
nors
2.4.
5. S
timul
ate
inte
rest
by
busi
ness
ang
el in
vest
ors
in a
grib
usin
ess
( affl
uent
in
divi
dual
s or
com
pani
es w
ho p
rovi
de c
apita
l for
a b
usin
ess
star
t-up
, usu
ally
in
exch
ange
for c
onve
rtibl
e de
bt o
r own
ersh
ip e
quity
), bu
ildin
g on
pas
t ini
tiativ
es
deve
lope
d by
the
Mau
ritiu
s Re
sear
ch C
ounc
il an
d SM
EDA.
2 »In
vest
ors
»Ag
ro-
proc
esso
rs
Stra
tegy
dev
elop
ed b
y ea
rly 2
018
BOI
SMED
A,
Mau
ritiu
s Re
sear
ch
Coun
cil
Gove
rnm
ent
2.4.
6. D
raft
reco
mm
enda
tions
to e
ncou
rage
ven
ture
cap
italis
m, i
.e. i
nves
tors
wh
o su
ppor
t sm
all c
ompa
nies
that
wis
h to
exp
and
but d
o no
t hav
e ac
cess
to
equ
ities
mar
kets
, in
the
setti
ng u
p of
orc
hard
s. In
par
ticul
ar, t
he fo
llowi
ng
prop
osal
s co
uld
be e
xplo
red :
»Of
fer R
&D
cost
sub
sidi
es ( R
&D
tax c
redi
t ) fo
r inv
esto
rs »Of
fer i
ncom
e ta
x cre
dit f
or in
vest
ors
»El
abor
ate
a le
gal t
ext t
o re
gula
te v
entu
re c
apita
lism
and
pro
tect
inve
stor
s.
2 »In
vest
ors
»Ag
ro-
proc
esso
rs
Stra
tegy
dev
elop
ed b
y th
e en
d of
201
7M
inis
try o
f Fi
nanc
ial
Serv
ices
, Go
od
Gove
rnan
ce
and
Inst
itutio
nal
Refo
rms
Fina
ncia
l Se
rvic
es
Prom
otio
n Ag
ency
, BOI
Gove
rnm
ent
59PLAN OF ACTIONSt
rate
gic
obje
ctiv
e 3 :
Fos
ter t
he s
ecto
r’s in
tegr
atio
n an
d ac
hiev
e gr
eate
r mar
ket d
evel
opm
ent
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
3.1.
Impr
ove
the
stru
ctur
e an
d or
gani
zatio
n of
the
loca
l m
arke
t.
3.1.
1. C
ondu
ct a
feas
ibili
ty s
tudy
for t
he e
stab
lishm
ent,
with
in ta
rget
ed a
groe
colo
gica
l zo
nes,
of s
trate
gic
clus
ters
targ
etin
g pr
evio
usly
iden
tifie
d st
rate
gic
fruit
and
vege
tabl
e cr
ops
for e
xpor
t. »As
sess
the
read
ines
s of
the
indu
stry
to e
ngag
e in
act
ive
pool
ing
of k
nowl
edge
. »En
sure
cle
ar e
xpec
tatio
n of
and
orie
ntat
ion
towa
rds
bene
fits
as a
bas
is fo
r act
ive
invo
lvem
ent o
f the
par
tner
s in
the
clus
ter.
»As
sess
the
read
ines
s of
com
pani
es to
est
ablis
h re
cipr
ocal
trus
t with
oth
er c
lust
er
mem
bers
.Th
e cl
uste
r app
roac
h ha
s se
vera
l adv
anta
ges
as it
con
tribu
tes
to :
»Ac
hiev
ing
econ
omie
s of
sca
le »En
hanc
ing
the
deliv
ery
of e
ssen
tial s
ervi
ces
»Re
duci
ng c
osts
of i
nput
s »M
akin
g th
e re
quire
d in
frast
ruct
ure
avai
labl
e »Bu
lkin
g of
pro
duce
»De
velo
ping
agr
o-pr
oces
sing
act
iviti
es »Re
duci
ng tr
ansa
ctio
n co
sts.
1Pl
ante
rsAg
ro-
proc
esso
rs
Feas
ibili
ty s
tudy
co
mpl
eted
by
mid
-20
18
MAI
FSFA
REI,
MIC
CPGo
vern
men
t /
dono
rs ( W
orld
Ba
nk G
roup
)
3.1.
2. E
ncou
rage
farm
ers
and
buye
rs to
eng
age
mor
e ex
tens
ivel
y in
con
tract
farm
ing
wher
eby
agric
ultu
ral p
rodu
ctio
n is
car
ried
out a
ccor
ding
to a
n ag
reem
ent b
etwe
en a
bu
yer a
nd fa
rmer
s, w
hich
est
ablis
hes
cond
ition
s, in
clud
ing
the
qual
ity re
quire
d an
d th
e pr
ice,
for t
he p
rodu
ctio
n an
d m
arke
ting
of a
farm
pro
duct
or p
rodu
cts.
»Un
derta
ke in
form
atio
n ca
mpa
igns
on
cont
ract
farm
ing.
»De
velo
p po
licie
s fo
r pro
mot
ing
cont
ract
farm
ing.
»Or
gani
ze b
usin
ess
mee
tings
bet
ween
buy
ers
and
farm
ers
to p
rom
ote
cont
ract
fa
rmin
g. »Es
tabl
ish
a m
ore
form
alize
d an
d st
ruct
ured
pro
cess
for c
ontra
ct fa
rmin
g ag
reem
ents
.
3Pl
ante
rsAg
ro-
proc
esso
rs
Sens
itiza
tion
cam
paig
n la
unch
ed
in 2
018
MAI
FSGo
vern
men
t
3.1.
3. P
rom
ote
mor
e fa
vour
able
mar
ketin
g co
nditi
ons
thro
ugh
the
prov
isio
n of
tech
nica
l as
sist
ance
to s
uppo
rt th
e es
tabl
ishm
ent o
f the
nat
iona
l who
lesa
le m
arke
t ini
tiativ
e to
im
prov
e ac
cess
to re
adily
ava
ilabl
e m
arke
t inf
orm
atio
n to
pla
nter
s an
d pr
oduc
ers,
in
parti
cula
r abo
ut d
omes
tic m
arke
t pric
es.
MAI
FS is
pla
nnin
g on
set
ting
up a
nat
iona
l who
lesa
le m
arke
t ( cu
rrent
ly b
eing
di
scus
sed
at G
over
nmen
t lev
el ) w
here
by th
e ‘w
hole
sale
mar
ketin
g of
frui
ts a
nd
vege
tabl
es w
ill b
e re
orga
nize
d at
nat
iona
l lev
el th
roug
h co
ncen
tratio
n of
vol
umes
in a
si
ngle
pla
ce’.*
Such
an
infra
stru
ctur
e wi
ll pr
ovid
e be
tter t
rans
pare
ncy
in m
arke
t dea
lings
and
at t
he
sam
e tim
e pu
t up
mod
ern
and
adeq
uate
pre
mis
es to
the
fruits
and
veg
etab
les
food
sy
stem
’.
1En
tire
valu
e ch
ain
Natio
nal w
hole
sale
m
arke
t ini
tiativ
e im
plem
ente
d by
201
7
MAI
FSGo
vern
men
t( o
ngoi
ng )
3.1.
4. S
et u
p a
netw
ork
to c
olle
ct, a
naly
se a
nd d
isse
min
ate
prod
uctio
n, m
arke
t, pr
ice
and
trade
info
rmat
ion
for t
he a
gro-
proc
essi
ng s
ecto
r loc
ally
and
ens
ure
that
exi
stin
g m
arke
t inf
orm
atio
n pl
atfo
rms
such
as
APM
IS a
re u
pdat
ed o
n a
regu
lar b
asis
.Un
derta
ke ta
rget
ed c
ampa
igns
to in
form
ope
rato
rs a
bout
the
exis
tenc
e of
suc
h to
ols
and
prom
ote
thei
r use
.
1En
tire
valu
e ch
ain
Netw
ork
crea
ted
and
oper
atio
nal b
y m
id-
2017
FARE
INa
tiona
l Co
mpu
ter B
oard
( u
nder
the
aegi
s of
the
Min
istry
of
Tec
hnol
ogy,
Com
mun
icat
ion
and
Inno
vatio
n )
Gove
rnm
ent /
do
nors
* Ib
id.
60 MAURITIUS NATIONAL EXPORT STRATEGY – AGRO-PROCESSING SECTOR• 2017 – 2021St
rate
gic
obje
ctiv
e 3 :
Fos
ter t
he s
ecto
r’s in
tegr
atio
n an
d ac
hiev
e gr
eate
r mar
ket d
evel
opm
ent
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
3.2.
Enh
ance
in
ter-
inst
itutio
nal
colla
bora
tion.
3.2.
1. T
hrou
gh th
e de
velo
pmen
t of a
n on
line
plat
form
, pro
mot
e a
mor
e sy
stem
atic
in
form
atio
n sh
arin
g sy
stem
bet
ween
farm
ers
and
TISI
s to
redu
ce in
form
atio
n as
ymm
etry
and
impr
ove
the
know
ledg
e ba
se o
f the
sec
tor.
1 »TI
SIs
»En
tire
valu
e ch
ain
Onlin
e pl
atfo
rm
deve
lope
d by
the
end
of 2
017
FARE
IM
aurit
ius
Cham
ber o
f Ag
ricul
ture
, BO
I, EM
, MEX
A,
SMED
A, A
MM
, M
CCI
Gove
rnm
ent
3.2.
2. H
old
regu
lar m
eetin
gs b
etwe
en th
e di
ffere
nt p
ublic
and
priv
ate
inst
itutio
ns a
nd
para
stat
al o
rgan
izat
ions
invo
lved
in th
e de
velo
pmen
t of t
he a
gro-
proc
essi
ng s
ecto
r and
ag
ree
on a
com
mon
age
nda
and
a lo
ng-t
erm
stra
tegy
to s
uppo
rt th
e se
ctor
and
pav
e th
e wa
y fo
r a c
ompr
ehen
sive
agr
icul
tura
l pol
icy.*
1En
tire
valu
e ch
ain
Mee
tings
hel
d tw
ice
a ye
ar s
tarti
ng in
201
7M
AIFS
Mau
ritiu
s Ch
ambe
r of
Agric
ultu
re,
MCC
I, SM
EDA,
EM
, BOI
, MEX
A,
AMM
Gove
rnm
ent
3.2.
3. E
stab
lish
a si
ngle
aut
horit
y, to
act
as
a on
e-st
op s
hop,
to p
rom
ote
and
supp
ort
agro
-indu
stry
und
er o
ne ro
of.
The
entit
y co
uld
take
the
form
of a
n in
ter-
bran
ch o
rgan
izat
ion
unde
r the
aeg
is o
f the
m
inis
tries
in c
harg
e an
d fu
nctio
ning
on
the
basi
s of
a p
ublic
–priv
ate
partn
ersh
ip
mod
el.
2Ag
ro-
proc
esso
rsOn
e-st
op s
hop
esta
blis
hed
by th
e en
d of
201
7
MAI
FSM
ICCP
Gove
rnm
ent /
do
nors
( EU?
)
3.3.
Impr
ove
know
ledg
e of
in
tern
atio
nal
mar
ket a
cces
s re
quire
men
ts.
3.3.
1. C
olle
ct a
nd d
isse
min
ate
info
rmat
ion
on in
tern
atio
nal q
ualit
y re
quire
men
ts a
nd
proc
edur
es.
Iden
tify
the
mos
t rel
evan
t way
s an
d m
eans
to d
iffus
e th
is in
form
atio
n ( p
ublic
atio
ns,
webs
ites,
e-m
ails
, tex
t mes
sage
s, e
tc. ).
1Ag
ro-
proc
esso
rsSy
stem
in p
lace
by
the
end
of 2
017
FARE
IEM
Gove
rnm
ent
3.3.
2. U
pgra
de a
nd im
prov
e th
e ex
istin
g ‘T
rade
Eas
y’ o
nlin
e po
rtal w
ith th
e vi
ew to
pr
ovid
ing
timel
y an
d re
leva
nt m
arke
t inf
orm
atio
n an
d in
tern
atio
nal m
arke
t req
uire
men
ts
to e
xpor
ters
.Co
nfig
ure
the
syst
em to
rece
ive
and
dist
ribut
e in
form
atio
n re
late
d to
frui
t and
veg
etab
le
proc
essi
ng th
roug
h ex
tern
al s
ourc
es.
Mak
e in
form
atio
n ab
out i
nter
natio
nal m
arke
t req
uire
men
ts m
ore
easi
ly a
vaila
ble.
Unde
rtake
targ
eted
cam
paig
ns to
info
rm o
pera
tors
abo
ut th
e ex
iste
nce
of s
uch
tool
s an
d pr
omot
e th
eir u
se.
2Ag
ro-
proc
esso
rsOn
line
info
rmat
ion
syst
em u
pgra
ded
by
the
end
of 2
017
MAI
FSIn
depe
nden
t co
nsul
tant
sDo
nors
3.3.
3. T
hrou
gh tr
aini
ngs
and
work
shop
s, im
prov
e th
e kn
owle
dge
base
of t
rade
rs a
nd
expo
rters
on
inte
rnat
iona
l mar
ket a
cces
s re
quire
men
ts in
clud
ing,
but
not
lim
ited
to,
qual
ity re
quire
men
ts a
nd p
roce
dure
s, d
istri
butio
n ch
anne
ls, p
acka
ging
, dut
y ac
cess
an
d pr
efer
entia
l mar
ket a
cces
s op
portu
nitie
s.
2Ag
ro-
proc
esso
rsOr
gani
ze in
form
atio
n wo
rksh
ops
ever
y fo
ur
mon
ths,
sta
rting
in
2017
MAI
FSM
CA,
coop
erat
ives
, M
CCI,
EM
Gove
rnm
ent
* M
aurit
ius
Cha
mbe
r of C
omm
erce
and
Indu
stry
(n.d
.). M
emor
andu
m fo
r the
201
5 N
atio
nal B
udge
t .
61PLAN OF ACTIONSt
rate
gic
obje
ctiv
e 3 :
Fos
ter t
he s
ecto
r’s in
tegr
atio
n an
d ac
hiev
e gr
eate
r mar
ket d
evel
opm
ent
Ope
ratio
nal
obje
ctiv
eAc
tiviti
esPr
iorit
y1=
high
2=m
ed3=
low
Impl
emen
tatio
n pe
riod
Bene
ficia
ries
Targ
ets
Lead
im
plem
ente
rSu
ppor
ting
impl
emen
ters
Poss
ible
fu
ndin
g so
urce
2017
2018
2019
2020
2021
3.4.
Ens
ure
stru
ctur
ed
expo
rt pr
omot
ion
and
bran
ding
ef
forts
.
3.4.
1. E
nsur
e gr
eate
r par
ticip
atio
n in
inte
rnat
iona
l tra
de fa
irs, n
otab
ly ta
rget
ing
fairs
in
non
-tra
ditio
nal m
arke
ts, t
o en
able
loca
l exp
orte
rs to
mee
t int
erna
tiona
l buy
ers
and
stre
ngth
en th
e vi
sibi
lity
of th
e M
aurit
ian
agro
-indu
stria
l sec
tor.
»Or
gani
ze tr
ade
mee
ts th
at w
ill b
e le
vera
ged
to p
rom
ote
proc
esse
d fo
od e
xpor
ts.
»Pr
omot
e lo
cal p
rodu
cts
thro
ugh
inte
rnat
iona
l tra
de fa
irs s
uch
as F
OODE
X in
Jap
an ;
ANUG
A fo
od fa
ir in
Col
ogne
, Ger
man
y ; a
nd G
ULFO
OD in
Dub
ai, a
mon
g ot
hers
. »Or
gani
ze b
ilate
ral t
rade
faci
litat
ion
foru
ms
to d
evel
op m
arke
t lin
kage
s.St
rate
gic
mar
kets
will
hav
e to
be
iden
tifie
d ac
cord
ing
to th
e ra
nge
of p
rodu
cts
that
ar
e av
aila
ble
for e
xpor
t, al
so e
nsur
ing
that
thos
e pr
oduc
ts c
ompl
y wi
th th
e no
rms
and
stan
dard
s of
the
targ
et m
arke
ts.
1Ag
ro-
proc
esso
rsPa
rtici
patio
n in
at
leas
t two
inte
rnat
iona
l ev
ents
per
yea
r, st
artin
g in
201
7
EMAM
M, M
CCI,
MEX
AGo
vern
men
t
3.4.
2. P
rom
ote
and
orga
nize
B2B
eve
nts
such
as
B2B
trade
sho
ws to
: »In
itiat
e co
ntac
t with
pot
entia
l int
erna
tiona
l buy
ers ;
»Ge
nera
te in
tere
st a
mon
g pr
ospe
ctiv
e fo
reig
n in
vest
ors.
Prov
ide
supp
ort t
o ex
porte
rs v
isiti
ng th
e m
arke
t.
1Ag
ro-
proc
esso
rsPa
rtici
patio
n in
at
leas
t two
B2B
eve
nts
per y
ear,
star
ting
in
2017
EMM
CCI,
SMED
A,
AMM
Gove
rnm
ent
3.4.
3. D
esig
n an
d im
plem
ent i
n-m
arke
t sup
port
prog
ram
mes
for t
he s
ecto
r, wi
th th
e m
ain
focu
s on
regi
onal
mar
kets
, inc
ludi
ng S
ADC
and
COM
ESA
regi
ons,
in o
rder
to
bene
fit fr
om p
refe
rent
ial m
arke
t acc
ess
to th
ose
mar
kets
. Thi
s ac
tivity
aim
s to
: »Bu
ild c
apac
ities
of c
omm
erci
al a
ttach
és a
t Mau
ritia
n m
issi
ons
abro
ad o
n th
e po
tent
ial o
f the
agr
o-pr
oces
sing
sec
tor b
y tra
inin
g, s
endi
ng re
late
d in
form
atio
n an
d ne
twor
king
with
the
rele
vant
inst
itutio
ns in
Mau
ritiu
s ; »Or
gani
ze tr
aini
ng s
essi
ons
for e
xpor
ters
on
proc
edur
es a
nd d
ocum
enta
tion
for e
xpor
t ; »Or
gani
ze tr
ade
mis
sion
s to
sel
ecte
d ta
rget
mar
kets
for b
usin
ess
owne
rs fr
om th
e se
ctor
.Co
nduc
t tar
gete
d m
arke
t stu
dies
to id
entif
y pr
oduc
ts w
ith e
xpor
t pot
entia
l, as
wel
l as
buye
rs’ r
equi
rem
ents
, and
dev
elop
targ
eted
mar
ketin
g st
rate
gies
.
1Ex
porte
rsIn
-mar
ket s
uppo
rt pr
ogra
mm
es d
esig
ned
and
impl
emen
ted
by
the
end
of 2
017
EMM
oFAR
IIT, B
OI,
MCC
I, M
EXA
Gove
rnm
ent
3.4.
4. C
oord
inat
e ef
forts
for t
he c
reat
ion
of a
bra
nd fo
r the
Mau
ritia
n ag
ro-p
roce
ssin
g se
ctor
that
cou
ld b
e us
ed to
pro
mot
e ex
ports
. »Us
e th
e na
tiona
l bra
nd a
s an
um
brel
la u
nder
whi
ch a
sub
-bra
nd d
edic
ated
to th
e ag
ro-p
roce
ssin
g se
ctor
cou
ld b
e de
velo
ped.
»Sy
nchr
onize
with
the
‘Mau
ritiu
s M
ade
with
Car
e’ ( E
M ) s
loga
n an
d ‘M
ade
in M
oris
’ ( A
MM
). »De
velo
p a
bran
ding
com
mun
icat
ion
stra
tegy
for t
he a
gro-
proc
essi
ng s
ecto
r tar
getin
g en
d co
nsum
ers
in s
trate
gic,
incl
udin
g pr
emiu
m, m
arke
ts.
»Ac
cess
to th
is b
rand
sho
uld
be o
pen
to a
ll wi
thin
a fr
amew
ork
that
will
hav
e to
be
defin
ed.
Rais
e aw
aren
ess
and
prom
ote
the
sect
or b
oth
loca
lly a
nd in
tern
atio
nally
.
1Ag
ro-
indu
stry
Bran
d de
dica
ted
to
the
sect
or c
reat
ed a
nd
laun
ched
by
mid
-201
7
EMBu
sine
ss G
row
th
Sche
me
Unit,
AM
M, M
AIFS
/ M
oFAR
IIT
Gove
rnm
ent
Photo: Miwok (CC0 1.0)
63REFERENCES
REFERENCES
Board of Investment ( n.d. ), The Mauritius Agro Industry : Contributing Towards Food Adequacy.
Boodia, N. ( 2003 ). Prospects, Constraints and Opportu-nities for Fruit and Vegetable Processing in Mauritius. Food and Agricultural Research Council, Mauritius.
Duke University Centre on Globalization, Governance and Competitiveness ( 2011 ). The Fruit and Vegeta-bles Global Value Chain : Economic Upgrading and Workforce Development.
Food and Agriculture Organization of the United Nations ( n.d. ). Food, Agriculture and Cities.
Food and Agriculture Organization of the United Nations ( 2015 ). Food Outlook – Biannual Report on Global Food Markets.
Government of Mauritius ( 1998 ). Food Act.
Government of Mauritius Information Service ( 2015 ). Stakeholders convened for consultative meeting on national wholesale market, 3 September. Available from www.govmu.org / English / News / Pages / Stake-holders-convened-for-Consultative-Meeting-on-Na-tional-Wholesale-Market-.aspx.
Human Resource Development Council ( 2012 ). A Study on Labour Shortage in the Agricultural Sector in Mau-ritius.
IBISWorld ( 2016 ). IBISWorld Industry Report, Global Fruit & Vegetables Processing.
International Trade Centre ( 2014 ). Mauritius : Company Perspectives – An ITC Series on Non-Tariff Measures.
Lutchmeenaraidoo, Seetanah ( n.d. ). National budget speech 2015–2016.
Mauritian Wildlife Foundation ( 2016 ). Mauritius fruit bat. Available from http : / / www.mauritian-wildlife.org / ap-plication / index.php?tpid=30&tcid=81.
Mauritius Chamber of Agriculture ( 2001 ). A New Strategic Orientation for the Agribusiness Sector.
Mauritius Chamber of Commerce and Industry ( n.d. ). Memorandum for the 2015 National Budget.
Mauritius, Ministry of Agro Industry and Fisheries ( 2008 ). Blueprint for a ‘Sustainable Diversified Agri Food Strat-egy for Mauritius 2008–2015’.
Mauritius, Ministry of Agro Industry and Fisheries ( 2007 ). Strategic Options in Crop Diversification and Livestock Sector 2007–2015.
Mauritius, Ministry of Agro Industry and Food Security ( 2016 ). Strategic Plan ( 2016–2020 ) for the Food Crop, Livestock and Forestry Sectors.
Mauritius, Ministry of Agro Industry and Food Security ( n.d. ). Food Security Fund Strategic Plan – 2013–2015.
Pather, Thiruthiraj A. ( 2007 ). Exportation de Produits Agroalimentaires dans la Région et au Niveau Mon-dial : Quelle Stratégie pour Maurice ? ( Export of Food Products in the Region and at Global Level : What Strat-egy for Mauritius? ).
President of the Republic of Mauritius ( 2015 ). Government programme 2015–2019, achieving meaningful change. Address to the Sixth National Assembly of Mauritius. 27 January.
Statistics Mauritius ( 2015 ). 2014 Census of Agriculture – Main Results.
Statistics Mauritius ( 2015 ). Digest of Agricultural Statis-tics 2014.
Statistics Mauritius ( 2015 ). Digest of Industrial Statistics 2014.
United Nations Industrial Development Organization ( 2013 ). Agribusiness Development : Transforming Ru-ral Life to Create Wealth.
Photo: Miwok (CC0 1.0)
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